Bitcoin News Today: Bitcoin Pressured Below $116,000 Amid Weak Jobs Data and Fed Rate Cut Hopes

Bitcoin's price remains under pressure, hovering below $116,000 as traders weigh the implications of weak US labor market data and anticipate potential liquidity-driven price action. The July nonfarm payrolls report, which showed only 73,000 new jobs—well below the 100,000 estimate—has shifted expectations toward an earlier-than-anticipated Federal Reserve rate cut, bolstering hopes for a short squeeze and dip-buying activity in the cryptocurrency market[1].

The subdued employment figures have raised speculation that the Fed may pivot from its recent hawkish stance. Despite Chair Jerome Powell’s earlier comments suggesting caution, the CME Group’s FedWatch Tool now shows growing market expectations for a rate cut at the September FOMC meeting[2]. This shift in monetary policy expectations has fueled optimism among Bitcoin traders, many of whom are viewing a rate cut as a potential catalyst for renewed bullish momentum.

Order-book data reveals significant short positions clustered near $120,000, suggesting a possible liquidity squeeze if prices rise to that level. Crypto investor Ted Pillows noted the potential for a sharp price move if these positions are triggered, given the large concentration of short liquidations in that area[3]. Meanwhile, dip-buying activity has been observed on exchanges like Bitfinex, where traders are showing confidence by accumulating Bitcoin at lower price levels[4]. This buying interest is seen as a sign that market participants are viewing current levels as attractive entry points.

Comparisons have also been drawn between current price action and earlier 2025 trends, with some analysts noting similarities that could point to a repeat of bullish patterns if key resistance levels are breached[5]. However, the uncertainty surrounding the accuracy of recent labor market data—particularly downward revisions in previous months—has introduced a degree of caution among traders. Analysts have raised concerns that the true state of the labor market may not be fully reflected in the reported figures, which could affect the reliability of expectations for a Fed rate cut[6].

While the labor market data has provided a short-term boost to Bitcoin’s price, the path forward remains uncertain. A sustained breakout above $116,000 would be necessary to confirm a shift in market sentiment. The presence of large short positions near $120,000 offers an opportunity for a rapid price move should they be liquidated, but this also highlights the volatility and unpredictability of current conditions[7].

In summary, Bitcoin’s price action is being driven by a combination of macroeconomic factors and on-chain liquidity dynamics. The weaker-than-expected US jobs data has increased the likelihood of a Fed rate cut and, by extension, enhanced Bitcoin’s appeal as a potential asset during periods of monetary easing. However, traders are advised to remain cautious due to the risks associated with revised economic data and potential geopolitical factors that could impact trade tariffs and market conditions[8].

Source:

[1] [Bitcoin Eyes Potential Rebound Amid US Jobs Data and Order-Book Liquidity Signals](https://en.coinotag.com/bitcoin-eyes-potential-rebound-amid-us-jobs-data-and-order-book-liquidity-signals/)