Bitcoin sat flat near $64,350 on Friday as traders held positions ahead of the U.S. payrolls report, while oil rebounded on renewed Strait of Hormuz tension. Bitcoin miner MARA Holdings also posted a wider-than-expected quarterly loss as the prolonged price slump squeezed mining returns.
Bitcoin traded near $64,350 on Friday, unchanged on the week, as the wider market drifted ahead of the U.S. payrolls report due later in the day. The token had earlier fallen 0.7% to $64,404.2, keeping it pinned inside a $62,000-$65,000 range for the week.
Oil Rebounds on Hormuz Tension
Brent crude rose 1.4% to $83.61 after reports that Iran will try to restrict U.S. and Israeli ships passing through the Strait of Hormuz and demand compensation from countries it deems hostile before letting them through, stalling a deal that had been pulling oil lower. Crypto markets were also pressured by waning optimism over that same Iranian deal, as no agreement appeared to have been reached despite U.S. assertions that one was close.
Higher crude revives inflation concerns that keep the Federal Reserve leaning toward tighter policy. The 10-year Treasury yield climbed seven basis points during the U.S. session, and the dollar posted its best day in two weeks.
Payrolls Test Looms for Rate Path
Nonfarm payrolls due later Friday are expected to show a mild uptick in job growth from the prior month, though overall growth is still expected to remain weak. The print is likely to factor into interest-rate expectations, since jobs and inflation are the Fed's biggest considerations for policy.
The Fed's last meeting showed policymakers growing increasingly concerned over sticky inflation, though Fed Chair Kevin Warsh gave few cues on the central bank's plans. A soft print would revive the case for the Fed to loosen policy and give bitcoin room above its current range; a strong one, stacked on climbing oil, would hand the hawks another reason to hold, keeping the range that has persisted since May intact.
Miner MARA's Losses Deepen
MARA Holdings, one of the largest Bitcoin miners in the U.S., reported weaker-than-expected second-quarter results on Thursday as the prolonged drop in Bitcoin prices squeezed mining returns. The company posted a loss per share of $1.60 against expectations for a $0.350 profit, its third consecutive quarterly loss. Its revenue of $174.9 million also fell short of expectations. Investors were unimpressed: the stock slid over 5% on Thursday.
Bitcoin's Range Persists
On shorter-term charts, Bitcoin has traded between $63,000 and $65,500 over the last several sessions, with the Average Directional Index reading just 14.4 — a level that points to a lack of clear trend in either direction.
Sources: CoinDesk, Investing.com, Investing.com
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