Crypto Market Sees Decline on July 4th Amid Economic and Trade Concerns
On Friday, July 4, Bitcoin and many altcoins experienced a downturn. Investors took profits, and trade worries returned. The hope for a Federal Reserve interest rate cut faded.
Bitcoin’s price fell to $107,800, down from its recent high of $110,200. Among the altcoins that suffered the most were SPX6900, Ethena, Dogwifhat, and Pepe.
The decline was likely due to the latest U.S. jobs report. The Bureau of Labor Statistics announced that 147,000 jobs were added in June, and the unemployment rate dropped to 4.2%. These numbers were better than expected, suggesting the Fed might not cut interest rates in July. This news hit the crypto market hard, as lower rates usually boost Bitcoin and altcoins.
The U.S. Independence Day holiday also played a role. Trading volume dropped by 33%,according to CoinMarketCap.The strong job numbers mean the Fed might not cut rates as planned. This is bad news for crypto, as rate cuts usually help the market. The upcoming July 7 tariff deadline added to the pressure. While deals were made with China, Vietnam, and the UK, issues with Japan, South Korea, and the EU remain. The risk of a trade war looms large.
Profit-taking was another factor. Traders locked in gains from the recent rally. Pudgy Penguins, Bonk, Fartcoin, and Dogwifhat, which had been doing well, now faced losses.
Despite the dip,Bitcoin’s fundamentals are still strong. ETF demand is up, and supply on exchanges is down. Technical patterns suggest a rebound could be on the horizon.
