Bitcoin News Today: Bitcoin Falls Below 114,000 as Weak NFP Data Intensifies Rate Cut Expectations

The recent U.S. non-farm payroll (NFP) data for July has triggered a shift in market sentiment, with expectations of an earlier Federal Reserve rate cut now gaining traction. The report revealed the addition of just 73,000 jobs, significantly lower than forecasts, while May and June figures were revised downward, further signaling a cooling labor market. The declining labor participation rate has intensified concerns over the broader economic slowdown, pushing investors to price in the likelihood of a rate cut as early as October. The U.S. dollar index fell in response, while gold prices surged, reflecting increased demand for safe-haven assets [1].

Bitcoin (BTC) has mirrored the broader market turbulence, with its price dropping below the critical 114,000 level following the NFP release. After a brief stabilization attempt, BTC has seen renewed selling pressure, with the 112,000 level emerging as a key support to watch. Analysts from Bitunix highlight that while the market is awaiting further macroeconomic triggers, the recent price action suggests a weak rebound and continued bearish momentum in the short term. The 117,500–118,000 range remains a significant resistance cluster, limiting upward potential unless there is a strong reversal in sentiment [1].

The Fed’s chair, Jerome Powell, has acknowledged the challenging economic conditions, describing them as “a very difficult environment,” yet reiterated that the central bank is not currently considering an acceleration of the 2025 rate cut forecast. This cautious stance, combined with the recent labor market data, has led to a more aggressive market pricing of an October cut, which is expected to weigh further on the U.S. dollar and influence the risk-on/risk-off dynamic [1].

Bitunix analysts recommend that short-term traders remain flexible, monitoring upcoming economic data such as the PMI and U.S. bond yields to gauge the next direction of BTC. Given the current price structure and market positioning, a consolidation phase is likely, with the path of least resistance appearing to be downward in the near term. Investors are advised to closely watch the 112,000 support level for confirmation of potential further declines [1].

Source: [1] Bitunix Analyst: US NFP Surprise Triggers Rate Cut Expectations, BTC Once Again Drops Below 114,000, Short-Term Outlook Bearish (https://www.theblockbeats.info/en/flash/305635)