Bitcoin experienced a wave of volatility early Thursday as stronger-than-expected U.S. employment figures threw cold water on hopes for near-term interest rate cuts.
Stronger Jobs Report Cools Bullish Momentum
BTC/USD surged to nearly $110,300 before retreating sharply, according to TradingView data, as fresh U.S. labor numbers surprised to the upside. June’s nonfarm payrolls report revealed higher-than-anticipated job creation, despite unemployment ticking slightly higher.
Commenting on the figures, The Kobeissi Letter noted on X that “headline numbers continue to crush expectations,” also highlighting an upward revision to May’s job count from 139,000 to 144,000. They labeled the data as “very hot,” suggesting the Federal Reserve may now hesitate to loosen monetary policy—something that generally benefits crypto markets.
Analysts at Blacknox and Material Indicators echoed this view, stating that the job report likely removes the possibility of a Fed rate cut in July.
Andre Dragosch from Bitwise added that futures now imply only two potential rate cuts between now and the end of 2025, further reducing expectations of dovish action from the Fed in the near term.
Interestingly, these numbers contrasted with private-sector employment data released a day earlier, which had supported the idea of an imminent cut. However, FedWatch data from CME Group now suggests markets see minimal likelihood of any policy changes before the September FOMC meeting.
Bitcoin Holds Key Support Despite Dip
Despite the initial negative reaction, some analysts remained optimistic. Keith Alan of Material Indicators pointed out that a lower unemployment rate ultimately signals a more robust economy, which could be beneficial for markets over the longer term.
Short-term structure remains intact, with CoinGlass data confirming strong liquidity support on both sides of current price levels. The $108,000 mark has become a focal point for traders, acting as a key support level.
“If we stay above $108K, I’m targeting $112K or even $120K,” said crypto trading channel Master of Crypto, analyzing liquidity positions and market momentum.
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