Bitcoin dropped to its lowest level in two weeks on Friday, sliding to $115,122 after stronger-than-expected US labour market data dampened hopes for interest rate cuts by the Federal Reserve. The decline came as part of a broader pullback in risk assets, with Ether falling around 3% and XRP down over 5%.

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The move follows a strong run in digital assets, with Bitcoin having recently touched a record high of $123,205 amid renewed optimism about regulatory clarity in the US and sustained inflows into crypto investment products. However, the latest macroeconomic data appears to have paused that momentum.

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“The broader uptrend remains intact, but momentum has cooled and traders are cautious,” said Rachael Lucas, crypto analyst at BTC Markets. She added that recent economic indicators are prompting investors to reassess their short-term positioning.

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Despite the short-term correction, many crypto observers maintain a bullish longer-term outlook, pointing to growing institutional interest, ETF inflows, and wider adoption. But near-term volatility appears likely to persist as markets recalibrate expectations for central bank policy.

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At current levels, Bitcoin remains up significantly year-to-date, but the next few weeks may test the staying power of recent gains. Whether the price finds support above $110,000 or retests lower levels may depend largely on incoming data and shifting expectations from the Fed.

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