Bitcoin Recovers Above $103,000 Amid Market Bounce and Weak Consumer Sentiment
Bitcoin and the broader cryptocurrency market ended a challenging week with modest gains on Friday, offering some relief to traders after several days of steep declines. Bitcoin climbed back above $103,000 by late Friday afternoon, marking a roughly 2% increase over the previous 24 hours. Earlier in the session, the cryptocurrency had dipped to around $99,000.
This recovery represents a turnaround from earlier in the week when Bitcoin plunged from above $110,000 on Sunday to below $99,000 by Tuesday—a drop exceeding 10% in just 48 hours.
Altcoins Exhibit Stronger Gains
Altcoins posted even more robust performance on Friday. Ethereum, XRP, and Solana each gained between 4% and 5%. Meanwhile, Dogecoin surged 12%, and Cardano increased by 9%.
Market analysts suggest that Friday’s rally was primarily driven by short-covering, with traders who had bet on falling prices booking profits after the week’s large declines. Such technical bounces are common following rapid selloffs.
Economic Data Could Influence Federal Reserve Decisions
New economic data released Friday may impact Federal Reserve policy moves in the near term. The University of Michigan Consumer Sentiment Survey revealed a sharp decline, with the index falling to 50.3 in November from 53.6 in October. These levels are comparable to those witnessed during significant economic crises.
The survey director highlighted that consumers are under stress from multiple financial pressures. Inflation expectations over the next 5 to 10 years remained elevated at 3.6%. This weak consumer sentiment data could prompt the Federal Reserve to reconsider its previously hawkish stance, which hinted at pausing rate cuts during the upcoming December meeting.
Government Shutdown Adds Uncertainty
The ongoing government shutdown has complicated economic analysis by halting the release of official statistics. This interruption has made surveys like the University of Michigan’s sentiment reading more crucial than usual.
The sharp drop in consumer sentiment may intensify pressure on Congress to resolve the shutdown, as lawmakers from both parties face growing calls to reach an agreement. Reopening the government would restore regular economic data flows, aiding market transparency.
Stock Market Performance Mixed; Treasury Yields Fall
On Friday, stock markets delivered mixed results. The Dow Jones Industrial Average gained 0.2%, and the S&P 500 edged up 0.1%, while the Nasdaq Composite slipped 0.2%. The Nasdaq marked its worst week since early April, weighed down by ongoing struggles in technology stocks and concerns over artificial intelligence valuations. Some analysts view this pullback as a healthy correction following strong gains from April through October.
Meanwhile, the 10-year Treasury yield dropped to 4.09% on Friday. Lower yields typically support risk assets such as cryptocurrencies by reducing borrowing costs and encouraging investment.
Market Outlook
Bitcoin’s price movements during the week mirrored broader risk asset trends. After falling below the $100,000 mark earlier in the week amid investor pullback from speculative positions, Friday’s bounce suggests that some buyers find current levels attractive.
With economic data evolving and uncertainties like the government shutdown ongoing, traders will be closely watching Federal Reserve signals and market sentiment to guide their next moves in the cryptocurrency space.
https://coincentral.com/crypto-markets-post-friday-recovery-after-week-of-heavy-losses/
