Crypto markets dipped over the weekend as traders braced for Friday’s US jobs report and digested some concerning comments from Treasury Secretary Scott Bessent. Bitcoin fell around 1.7% to hover near $108,000, while Ethereum got hit harder, dropping 3.5% to about $3,750.
Bessent told CNN that the Federal Reserve’s high interest rate policy “may have driven parts of the economy, particularly housing, into recession.” He argued the Fed now has room to cut rates but warned that keeping borrowing costs elevated risks putting more economic pressure on households carrying lots of debt.
Initially crypto rallied a bit on hopes Bessent’s comments meant rate cuts are coming. But those gains faded fast as traders realized rate cuts driven by economic weakness might actually trigger volatility rather than being the clean liquidity boost everyone wants.
Friday’s employment report at 8:30 AM will be crucial. Economists expect hiring to slow while unemployment stays around current levels. The data should clarify whether potential rate cuts reflect confidence in a soft landing or growing worries about economic weakness.
On-chain data isn’t looking great either. Bitcoin’s been stuck below $113,000 for three weeks now, which some analysts see as the line between bullish and corrective phases. Glassnode warned that a sustained break lower could trigger a deeper pullback toward $88,000, based on the realized cost basis of actively circulating supply.
Conclusion
Bitcoin fell 1.7% to $108,000, and Ethereum dropped 3.5% to $3,750 as Treasury Secretary Bessent warned high rates may be pushing parts of the economy into recession ahead of Friday’s jobs data.
Also Read: Ethereum Price
