Bitcoin’s crazy week: Why did the wind reverse?

While Bitcoin’s near-record gains have reignited excitement in the cryptocurrency market, the leading crypto asset, which has seen wild swings this week, has once again been pulled below the key $70,000 level.

Bitcoin this week approached $73,798, an all-time high set in mid-March, as demand for newly authorized exchange-traded funds (ETFs) increased.

However, the leading crypto asset also retreated on Friday as U.S. macro data increased expectations that the Federal Reserve may once again delay rate cuts.

Last week, U.S. Bitcoin ETF inflows increased for the 18th consecutive day, an increase that had not occurred until Thursday. Earlier this week, interest in cryptocurrencies from major financial companies also increased again, with Mastercard resuming allowing users of Binance, the world’s largest cryptocurrency exchange, to make purchases on its network.

The wind of US data has stopped

While the news sent Bitcoin close to its peak, things reversed in the cryptocurrency market following the news in the United States.

Although the U.S. non-farm payrolls increased by 272,000 in May, exceeding expectations, the unemployment rate rose from 3.9% to 4%. The data proved that the U.S. economy has not cooled sufficiently, causing the market to postpone the Fed’s expectations. This reduced risk appetite and caused the cryptocurrency market to retreat.

Bitcoin’s weekly performance

As of the weekend, Bitcoin was trading at $69,400, while Ethereum was trading at $3,790. Solana was trading at $159, and Cardano was trading at $0.43.