Cryptocurrencies decline as traders await US jobs data, digest Treasury comments

Digital assets experienced moderate declines on Sunday as market participants adjusted positions in anticipation of upcoming U.S. employment figures and processed commentary from Treasury Secretary Scott Bessent indicating that elevated interest rates are starting to pressure certain economic sectors. According to CoinGecko data, Bitcoin traded approximately at $108,000, reflecting a 1.7% decrease over the previous 24 hours, while Ethereum declined about 3.5% to approach $3,750. The broader digital asset market showed weakness, with alternative cryptocurrencies underperforming as investors maintained cautious positioning. During a weekend television interview, Bessent suggested that the Federal Reserve's tight monetary policy may have pushed segments of the economy, specifically housing, into recessionary territory, and contended that the central bank currently possesses flexibility to reduce rates. He cautioned that maintaining high borrowing costs risks exacerbating economic strain, particularly for households utilizing leverage. Cryptocurrencies initially found support on prospects that Bessent's statements might strengthen arguments for monetary easing, but these advances diminished as traders considered whether rate reductions prompted by economic slowing might generate short-term volatility rather than providing straightforward liquidity benefits. Bitcoin's market dominance remained robust, indicating restrained risk appetite toward smaller digital tokens. With U.S. financial markets preparing to resume activity Monday, investor attention centers on Friday's employment report scheduled for release at 8:30 a.m. Eastern Time. Economists project a moderation in hiring activity while unemployment remains near recent readings. This data will assist in determining whether potential rate cuts stem from confidence in achieving an economic soft landing or increasing worries about weakening economic areas. Blockchain indicators additionally suggest moderating momentum. Bitcoin has been unable to reclaim levels above the short-term holder cost basis approximately at $113,000, a threshold some analysts consider the demarcation between bullish and corrective market phases. This technical level has constrained prices for three consecutive weeks following six months of trading above it, indicating diminished demand at present valuations according to Glassnode's recent analysis. A prolonged breakdown below this level increases vulnerability to more substantial declines, with subsequent significant support positioned around $88,000 based on the realized cost basis of actively circulating supply, a level that has historically signaled corrective periods during previous market cycles.