US Jobs Data Shakes bitcoin
bitcoin briefly surged above $110,000 before pulling back as stronger-than-expected US nonfarm payrolls data hit the .
The report showed more jobs added in June and a steeper unemployment decline than anticipated, challenging bulls' optimism.
Fed Rate Cut Now Unlikely This Summer
Analysts say the hot labor numbers take a Federal Reserve interest rate cut off the table for July.
As The Kobeissi Letter noted on X, "The headline numbers continue to crush expectations," signaling the Fed’s inclination to maintain current rates.
Blacknox, cofounders of Material Indicators, confirmed that the drop in unemployment "takes a FED Rate Cut in July off the table."
Andre Dragosch from Bitwise highlighted futures pricing that now reflect only two rate cuts total through December 2025.
Reaction and price Liquidity Analysis
bitcoin's action remains supported by critical liquidity levels, particularly around $108,000, which traders view as key support.
Material Indicators’ Keith Alan emphasized that while prices dipped short term, "a stronger economy will serve the market well" over time.
CoinGlass data shows order-book liquidity above and below price remains intact, maintaining structural stability.
Crypto traders remain cautiously optimistic; Daan Crypto Trades tweeted, "$BTC Attempting a breakout... Any closes up around this $110K region would be good."
Master of Crypto projects targets between $112K and possibly $120K if support holds.
Broader market Implications
The divergent US private-sector jobs report from the previous day momentarily boosted rate cut hopes but was overshadowed by the nonfarm payrolls strength.
CME Group’s FedWatch Tool confirms minimal market expectation for Fed easing before September, reinforcing cautious sentiment across risk assets including crypto.
This dynamic underscores the interdependence between macroeconomic indicators and digital asset markets in today's cefi environment.
In conclusion, bitcoin's struggle to maintain gains beyond $110K reflects broader uncertainty driven by robust US employment figures.
Understanding these forces aids investors navigating the evolving market landscape and federal policy outlook.
