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Bitcoin's recent rally has lost momentum as traders adopt a cautious stance ahead of the upcoming U.S. nonfarm payrolls report, a key indicator influencing Federal Reserve policy decisions. Prices dipped below $65,000 after reaching a three-week high, reflecting market uncertainty around macroeconomic data and potential Fed rate hikes. Analysts note that short-term traders are exiting positions to avoid volatility risks, while longer-term investors remain focused on the asset's fundamental value proposition. The U.S. jobs data, scheduled for release later this week, will be closely watched by markets to gauge the Fed's tightening trajectory. A stronger-than-expected report could accelerate rate hike expectations, increasing pressure on Bitcoin and other risk assets. Conversely, weaker data might delay tightening, potentially supporting a crypto rebound. Traders are also monitoring broader macroeconomic conditions, including inflation trends and energy prices, which impact investor risk appetite. For crypto markets, the coming week represents a critical juncture. If Bitcoin fails to reclaim key resistance levels above $68,000, it could signal deeper technical weakness. Institutional adoption and regulatory developments will remain secondary factors to watch. Gulf investors should pay particular attention to how global macroeconomic shifts affect liquidity in emerging markets, which often correlate with crypto price movements.
