Bitcoin Bitcoin/USD Heading into a crucial week, concerns that the U.S. economy may be overheating continue to weigh on top cryptocurrencies.
What happened: Stocks retreated after a stronger-than-expected non-farm payrolls report, which showed payrolls rose by 256,000 jobs versus a forecast of 164,000 jobs, reignited concerns about accelerating inflation. Chip Capital.
The strong jobs data virtually eliminated expectations for a near-term rate cut by the Federal Reserve.
Those concerns are heightened by the prospect of potential Trump-era tariffs, which could further fuel inflationary pressures.
Bitcoin was trading around $91,100 in the early morning hours in the United States, down 3.4% in the past 24 hours.
Ethereum Ethereum/USD Following King Crypto lower, it was trading around $3,080, down 5.8%.
Key economic data including the Producer Price Index (PPI), Consumer Price Index (CPI) and unemployment claims are all scheduled to be released this week.
Any further signs of an overheating economy could further test markets, challenging the narrative that cryptocurrencies are a safe haven against inflation.
Also Read: Cryptocurrency Breakthrough on Capitol Hill: Senate Subcommittee Signals Shifting Political Winds
Why it’s important: In addition to economic uncertainty with the president-elect, the cryptocurrency industry is also seeing significant political developments Donald Trump The company is reportedly forming a cryptocurrency advisory board composed of approximately 24 CEOs and founders, including key figures from industry giants such as micro strategy Magnetic transmission technology, Coin library coin and circle USDC/USDAccording to Bloomberg.
The committee is designed to provide guidance on digital asset policy and help Congress draft legislation.
The advisor will also work with government agencies with the aim of establishing a strategic Bitcoin reserve.
Cryptonet CEO Chris Marsalekand Executive Chairman of MicroStrategy Michael Seilervisited Mar-a-Lago to discuss policies and potential roles in the incoming administration.
CEO of Coinbase Brian Armstrong and ripple Ripple/USD CEO Brad Garlinghouse They also reportedly met with Trump recently to show their support.
Circle CEO Jeremy Allaire Recently said that his company donated 1 million USDC/USD Trump’s inaugural committee.
The creation of the committee, with strong participation from industry leaders, signals a possible shift in the U.S. to a more crypto-friendly regulatory environment while also shining a spotlight on cryptocurrencies’ relevance in times of economic uncertainty.
This week’s developments could prove to be a major inflection point for digital assets.
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