Bitcoin Rebounds From Seven-Week Low as Tech Shares Recover

The overnight decline followed a slide in technology shares, amid concerns that a Democratic sweep in this week’s U.S. midterm elections could slow investment in artificial intelligence. Renewed worries about the Middle East conflict lifted oil prices and further dampened risk appetite. U.S. stock futures on Friday pointed to a rebound in the tech-heavy Nasdaq.

Ether gained 0.4% to $2,235 after touching a one-week low of $2,206 overnight. Investors’ next key focus is the U.S. nonfarm payrolls report, due at 1330 GMT, which could shift expectations for Federal Reserve interest-rate policy.

Stronger employment and wage growth could strengthen expectations for restrictive monetary policy, support the dollar and put renewed pressure on bitcoin toward $75,000, followed by potential support around $72,000, Zaye Capital Markets Chief Investment Officer Naeem Aslam said in a note. Weaker job growth, rising unemployment and moderating wages could instead bolster expectations for lower future rates and support a recovery toward $78,000-$80,000, he said. Aslam identified $82,000 as a more significant resistance level.

Economists surveyed by The Wall Street Journal expected October nonfarm payrolls to rise by 59,000, following a 29,000 increase in September, and the unemployment rate to remain at 4.2%.