#BTC #ETH

The crypto market entered red territory over the weekend as traders reduced risk ahead of the long-awaited employment report in the US and reacted to new warnings about the impact of high interest rates on the economy.
Bitcoin is trading around $107,400, having decreased by about 3% over the last 24 hours, while Ethereum lost even more, dropping approximately 4% to $3,750, according to data from CoinMarketCap. Most major altcoins followed the same trend, signaling a broader market pullback.
Investor caution has increased after U.S. Treasury Secretary Scott Bessen stated in a television interview that the prolonged period of tight monetary policy from the Federal Reserve may have already pushed parts of the economy – particularly the housing sector – into recession. According to him, the Fed now has room to begin lowering interest rates, but delaying this process could deepen financial pressure on heavily indebted households.
Following Besant's statement, crypto prices initially rose as the market interpreted the possibility of future monetary easing as a positive signal. However, the optimism quickly evaporated as traders feared that rate cuts due to economic weakness could lead to new short-term volatility instead of a sustainable recovery.
Attention is now focused on the upcoming U.S. employment report, which will be released on Friday morning. Economists expect a slowdown in hiring, but a steady unemployment rate – data that could clarify whether the Fed's next move will be a proactive adjustment or a reaction to deteriorating conditions.
On-chain indicators also point to a weakening momentum. Bitcoin has failed to return above the level of $113,000 – the value that analysts at Glassnode define as the baseline price for short-term investors, separating bullish recoveries from corrective phases.

This level acts as a "ceiling" for almost a month after half a year of trading above it, indicating weakened demand at current prices. Glassnode warns that if Bitcoin fails to hold, the next significant support zone could be around $88,000, a level corresponding to previous correction phases.
So far, traders seem cautious and are waiting for confirmation from macroeconomic data and signals from the Fed before committing to new positions in digital assets.