Key Takeaways
- Bitcoin swiftly erased gains after stronger-than-expected US nonfarm payroll data and an unexpected drop in unemployment.
- Market analysis suggests the Federal Reserve is unlikely to cut interest rates during its July meeting.
- BTC price action must overcome remaining upside liquidity barriers to sustain momentum.
Bitcoin (BTC) experienced sudden volatility as US employment data dashed hopes for near-term Federal Reserve rate cuts, impacting risk assets.
US Job Figures "Too Strong" for Bitcoin Bulls
Data from Cointelegraph Markets Pro and TradingView revealed BTC/USD retreating from daily highs near $110,300 after June's nonfarm payrolls exceeded forecasts, with unemployment falling more than anticipated.
👉 Why the Fed may delay rate cuts further
"The May jobs report was revised upward from 139K to 144K. Core metrics continue outpacing expectations," noted The Kobeissi Letter in an X post. Analysts described the figures as "too strong," diminishing prospects for Fed policy easing—a headwind for crypto and risk assets.
Blacknox, co-founder of Material Indicators, stated:
"The unemployment drop effectively rules out a July rate cut. Federal funds futures now price just two total cuts by December 2025."
This contrasted sharply with the prior day’s weaker ADP private payrolls report, which had briefly bolstered arguments for July easing.
Liquidity Barriers Persist Around BTC Price Levels
Market structure remained intact on lower timeframes, with exchange order books showing firm liquidity clusters above and below spot price. Traders identified $108,000 as critical support—holding this level could pave the way for a push toward $112,000–$120,000, per liquidity heatmaps.
Keith Alan of Material Indicators offered a bullish counterpoint:
"Lower UNRATE signals a stronger US economy. While BTC dipped short-term, long-term fundamentals improve with economic resilience."
FAQ
Q: How did Bitcoin react to the jobs report?
A: BTC initially climbed toward $110.3K before retreating as traders priced in reduced Fed rate-cut odds.
Q: What’s the new market expectation for Fed cuts?
A: Futures now anticipate only two 25-basis-point reductions through 2025, down from prior projections.
Q: Which price level is crucial for BTC’s next move?
A: Maintaining $108K as support is vital; losing it may trigger liquidations toward $105K.
Q: Could stronger employment data benefit crypto long-term?
A: Yes—economic stability supports institutional adoption, though short-term volatility may persist.
Q: Where can traders monitor liquidity shifts?
A: Tools like CoinGlass display real-time liquidation heatmaps highlighting key BTC price zones.
👉 Track BTC liquidity trends
Disclaimer: This content represents market analysis, not financial advice. Cryptocurrency investments involve high risk; conduct independent research before deciding.
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