Crypto Market Slips on Fed Outlook; Bitcoin Retests $108,000 Support

Bitcoin continued to slide last week as stronger-than-expected US economic data dampened the prospects of further Federal Reserve interest rate cuts this year.

US GDP data in particular saw a significant upward revision, expanding at an annual rate of 3.8% versus 3.3%, bolstering the case for the “no rush to ease” camp.

“Altcoins slid further, seeing a 10% decline in their total capitalisation. Smaller, more speculative coins recorded even steeper losses, in some cases as much as 30%, as risk aversion took hold,” said Simon Peters, Crypto Analyst at eToro.

Looking ahead, the focus this week will be on fresh labour market data from the US, including JOLTS job openings, ADP employment change, and the much-anticipated non-farm payrolls and unemployment rate due Friday. With bitcoin having retested its recent support of $108,000, stabilisation in the labour market could prompt further downside. Conversely, any softening in jobs data may swing sentiment back toward the bullish case for rate cuts, supporting cryptoasset prices.

Biggest Movers Bucking the trend of the overall crypto market, $QNT is up 15% in the last week on news that UK Finance, a trade association and the collective voice of the UK banking and finance industry, has launched a pilot project to deliver the first UK live transactions of tokenised bank deposits using the Quant network.

Tokenised deposits are a digital representation of traditional sterling commercial bank money and retain the trust and regulatory protections of conventional deposits, while offering benefits such as enhanced speed and fraud protection.

The pilot will run until mid-2026 and aims to demonstrate benefits to customers, businesses and the wider UK economy.