Just as cryptocurrency investors grew comfortable with the late 2024 rally, the recent weakness is a potential concern.
Bitcoin (BTC-USD) fell to as low as around $90,200 before ruthlessly snapping back. It closed at $94,804, back to its near-term support price. Bitcoin and Ethereum’s (ETH) volatility may hurt Lif3 prices. In the last year, LIF3 dropped by 63.84%.
Bitcoin markets briefly fell to lows not seen since late November 2024 because of interest rate concerns. Last week, the U.S. reported strong job additions in the retail sector. The government and healthcare sector also added jobs. This would let the Federal Reserve keep interest rates the same. Inflation is still lingering. The recent rate cut will only increase inflation rates. Food and shelter prices are not falling, hurting the disposable income of many low-income consumers.
Should Bitcoin re-test November’s lows, it will send MicroStrategy (MSTR), Bit Digital (BTBT), Coinbase (COIN), Marathon (MARA), and Riot Platforms (RIOT) lower.
Your Takeaway
Bitcoin’s price volatility is nothing new. It has a bigger chance of breaking out above $100,000 and climbing from there. Investors expect regulators to further loosen rules that restrict the Bitcoin market. That would benefit BTC prices and cryptocurrency platforms like Coinbase.
