Bitcoin Pulls Back from $116K Despite Fed Rate Cut Bets Surging Past 75%
Bitcoin's recent rally faced a sharp rejection near the $116,000 mark, slipping back toward three-week lows. This comes despite growing optimism around a potential Federal Reserve interest rate cut, driven by unexpectedly weak U.S. employment data.
U.S. Labor Market Signals Weakness
The latest employment report showed the U.S. economy added only 73,000 jobs in July, well below expectations of 100,000. Additionally, previous months were revised downward by a combined 258,000 jobs. The unemployment rate rose slightly to 4.2%, reflecting a slowdown in labor market momentum.
Traders Eye Fed Rate Cuts
In response, market confidence in a Fed rate cut by September surged, with some forecasts now placing the probability above 75%. A weaker jobs market typically fuels expectations of rate easing to support the broader economy.
Bitcoin Faces Liquidation Pressure
Despite the seemingly bullish macro backdrop, Bitcoin dropped below $114,000 as risk sentiment wavered. Over $630 million in crypto long positions were liquidated during the downturn, with technical analysts now watching the $111,000 support level closely.
Some investors remain hopeful that the Fed's potential dovish pivot will benefit risk assets like Bitcoin. However, the mixed signals — weak economic data alongside inflation and geopolitical risks — continue to create uncertainty.
🪧 Summary Table
| Metric | Value |
|---|---|
| Bitcoin Peak Level | ~$116,000 |
| Current Price Trend | Down to ~$114,000 |
| July Job Additions | +73,000 (vs 100,000 expected) |
| Unemployment Rate | 4.2% |
| Fed Rate Cut Odds | >75% for September |
| Liquidations Total | ~$630 million (mostly longs) |
| Support Level to Watch | $111,000 |
