The cryptocurrency market is showing signs of recovery after the selling wave this week. Bitcoin (BTCUSD) and other cryptocurrencies rose on Friday after sharp declines throughout the week. While this appears to calm fears of the second major correction of the month, markets are keeping an eye on the US March employment report to be released next week. This report is considered an important factor that may affect the course of the cryptocurrency market in the coming period.

Although Bitcoin fell below $65,000 this week, it increased by 1% in the last 24 hours to $66,800. The leading cryptocurrency, which reached its all-time high of $74,000 in mid-March, had difficulty holding on to those levels. The volatile sales wave after the peak made investors worried that a similar correction might occur this week.

Cryptocurrency exchange Bitbank analyst Yuya Hasegawa, evaluating Bitcoin’s current price movements, said, “Bitcoin continues to trend horizontally, creating a symmetrical triangle formation around $ 70,000. Bitcoin started this week with a sales wave thought to originate from the spot market and fell below $ 65,000.” declined.” he said.

Just like the traditional stock market, the cryptocurrency market is significantly affected by the closely watched US employment report. Behind this week’s declines are investor fears that persistent inflation will cause the Federal Reserve to keep interest rates higher for longer. This situation negatively affected both the cryptocurrency market and the stock market.

Inflation and interest rates are critical to broader risk perception in markets. Investors are looking for signs of a cooling in the labor market. However, a very strong employment number may also unsettle the markets. Hasegawa explains this situation as follows: “The market is waiting for the US employment report, which is expected to show less job creation than in the previous three months. If the employment data shows some cooling in the labor market, the market will believe that the Fed will start cutting interest rates this summer and not do so later.” can regain his confidence.”

When we look at cryptocurrencies other than Bitcoin, Ethereum (ETHUSD), which ranks second in terms of market value, fell below $ 3,300 with a decrease of 1.5%. A more mixed course was seen in smaller altcoins. While Solana lost 7% of its value, Ripple (XRPUSD) remained just above the horizontal course. There is a negative picture for Memecoins. Dogecoin (DOGEUSD) dropped 5%, while Shiba Inu (SHIBUSD) lost 4%.

After the ups and downs throughout the week, the rise seen on Friday can be considered as a signal of recovery in the cryptocurrency market. However, the US employment report stands out as the most important agenda item of the coming week. The results of this report may play a critical role in determining the future direction of the cryptocurrency market.