Bitcoin Price Hits 1-Week High. Watch This Next Crypto Catalyst.

Bitcoin traders are watching the August jobs report for clues on future interest rate cuts. (Dreamstime)

Cryptocurrency prices were mixed toward the end of a muted week for digital assets, however, the next catalyst could come as soon as Friday morning in the shape of key employment data.

Bitcoin was up 1.4% over the past 24 hours to $112,423, according to CoinDesk data, with both prices and volumes rising as European markets opened. The world’s largest coin has ranged between $107,000 and $112,000 over the past week, largely driven by macroeconomic factors.

Traders are watching the August jobs report, scheduled for Friday morning. The data will be an important signal for interest rate cuts as soft hiring trends could push the Federal Reserve to lower rates later this month, which typically boosts high-risk assets like cryptos. Economists expect the unemployment rate to remain largely the same as the previous month.

While Bitcoin has moved into the mainstream at an accelerated pace this year, its trading pattern has become increasingly unpredictable, occasionally trading more like a safe haven asset than a riskier bet.

Other cryptos still largely trade as high-risk assets. Among larger altcoins, Ether and XRP were both flat early in the day, while Solana dropped 0.7%.

Futures tracking the S&P 500 and Nasdaq rose 0.2% and 0.5%, respectively.

Tether, which runs the world’s largest stablecoin USDT and the fourth biggest crypto by market value, is exploring investments in gold, according to a Friday report by the Financial Times. The company has held talks with numerous firms about taking a stake in companies in various stages of the gold supply chain, according to people familiar with the matter, playing into the idea of cryptos as a form of “digital gold.”

Tether didn’t immediately respond to a request to comment on the report.

Write to Elsa Ohlen at elsa.ohlen@barrons.com