Crypto Prices Dip Amid US Jobs Data, Rate Risk Warnings

The cryptocurrency market experienced a notable decline as investors grew cautious ahead of the delayed U.S. employment report, now postponed due to a prolonged government shutdown. Bitcoin fell around 3%, trading near $108,000, while Ethereum dropped about 4%, reflecting broader negative sentiment across major altcoins. U.S. Treasury Secretary Scott Bessent highlighted concerns that the Federal Reserve's high interest rates may have pushed parts of the economy, particularly housing, into recession, suggesting the Fed has room to cut rates but warning of potential increased market volatility. Initial optimism following Bessent's remarks about possible rate cuts faded as traders anticipated short-term instability instead of a clear market rebound. On-chain data showed Bitcoin struggling to break above the $113,000 cost basis, a key threshold separating bullish trends from corrections, with analysts cautioning that failure to maintain this level could lead to further declines toward support near $88,000. The forthcoming employment data report remains critical for determining the Federal Reserve's next policy moves and the crypto market's direction.