Bitcoin News Today: Bitcoin rebounds but stays below $116,000 as Fed rate cut odds rise above 75%

Bitcoin remains below $116,000 despite a weaker-than-expected U.S. nonfarm payroll report, which boosted market expectations for an earlier Federal Reserve rate cut. The July jobs data reported 73,000 new jobs, significantly below the 100,000 forecast, signaling potential weakening in the labor market. This has led traders to increasingly price in a rate cut at the Fed’s September meeting, as reflected in CME Group’s FedWatch tool [1]. The shift has triggered a modest rebound in Bitcoin, though it continues to trade below the $116,000 level [2].

Market sentiment was initially pressured by concerns over new U.S. trade tariffs, which pushed BTC/USD to intraday lows near $114,116 [3]. However, the poor jobs data provided a short-term relief, with some analysts and traders questioning the accuracy of the labor market data. The Kobeissi Letter, for example, highlighted significant downward revisions in employment figures for May and June, suggesting either an impending recession or serious data integrity issues [4]. U.S. President Donald Trump has also weighed in, intensifying pressure on Federal Reserve Chair Jerome Powell to cut rates [5].

From a technical perspective, order-book data reveals potential for a short squeeze closer to $120,000, a level that has not been revisited in some time. Crypto investor Ted Pillows noted that large short liquidation blocks are positioned near this level, signaling a potential target for a Bitcoin rebound [6]. Additionally, Bitfinex data shows increased buying activity below $115,000, suggesting that dip-buying is gaining traction among market participants [7].

Some traders have drawn parallels between the current price action and early 2025 movements, indicating that the market may be in a similar buildup phase ahead of a potential breakout [8]. However, the path forward remains uncertain, with Bitcoin still facing resistance near $116,000 and facing mixed sentiment about the broader macroeconomic environment.

Source: [1] Bitcoin rejects at $116K despite US jobs win as Fed rate cut bets pass 75% (https://cointelegraph.com/news/bitcoin-rejects-116k-us-jobs-win-fed-rate-cut-bets-pass-75?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)