Bitcoin News Today: Bitcoin Slumps Below $112,000 Amid Seasonal Weakness and Economic Uncertainty

Bitcoin has recently fallen below the $112,000 support level, marking a significant shift in market sentiment after weeks of relative stability. According to Matrixport, a leading cryptocurrency analytics firm, this downturn is primarily driven by two key factors: seasonal weakness typically observed in August and increased macroeconomic uncertainty, particularly from recent U.S. employment data [1]. The firm, which has maintained a cautious stance for some time, now sees its warnings materializing as the market reacts to broader risk-off positioning and a fragile economic outlook [1].

The July non-farm payroll report added to the bearish momentum, with only 73,000 new jobs added—far below forecasts—sparking skepticism and political tensions. The report’s credibility has been questioned, especially after President Trump called for the resignation of Bureau of Labor Statistics Commissioner Erica McEntaffer. This has fueled concerns over the accuracy of economic indicators and potential policy shifts [1]. As a result, investors have increasingly adopted conservative strategies, leading to a correction in high-risk assets such as Bitcoin [1].

Matrixport’s analysis further highlights that Bitcoin’s performance during the summer months has historically been weaker, and this pattern has intensified amid current macroeconomic headwinds [1]. The inability to reclaim the $116,000 level—a key psychological and technical threshold—has heightened fears of further declines. Analysts such as Trader Cipher X and BitBull have suggested that if Bitcoin fails to hold above $112,000, it could see a drop to as low as $104,000 [1]. However, BitBull also noted that technical indicators still hint at a potential reversal pattern, with a long-term price target of $148,000 [1]. These forecasts, however, represent analyst views and not confirmed market outcomes [1].

The broader economic landscape remains under pressure. New York Fed President John Williams has cautiously praised the labor market, while the White House has downplayed the July data, suggesting a rebound is imminent. Meanwhile, market expectations are pricing in a potential September interest rate cut by the Federal Reserve, which may provide some relief to risk assets [1]. However, Matrixport emphasizes that until economic fundamentals show clear improvement, high-risk assets like Bitcoin are likely to remain underperforming [1].

Bitcoin’s price is currently within a medium to long-term trend channel, with an upper boundary at $116,909.47 and a lower boundary at $114,594.43 [1]. Maintaining strength above the lower line is crucial for bullish momentum, while a sustained break below it could indicate the formation of a top. The Fear and Greed Index currently reads at 64 (Greed), suggesting that the market has not fully shifted to bearish sentiment, although caution is warranted given the near balance in long/short ratios [1].

Matrixport’s findings reinforce the importance of considering both structural and cyclical factors when assessing Bitcoin’s near-term trajectory. While immediate volatility remains a risk, the longer-term outlook will depend on how global economic conditions and policy responses evolve in the coming months [1].

Source:

[1] HashKey Trade Moment: Amidst a Challenging Macroeconomic Environment, Bitcoin Holding

https://news.futunn.com/en/post/60036837/hashkey-trade-moment-amidst-a-challenging-macroeconomic-environment-bitcoin-holding