Bitcoin Reverses from $110K Peak After Hot Jobs Report Kills July Fed Cut Chances
Bitcoin price today took a wild ride Thursday morning. After climbing to $110,300, BTC crashed back down when the U.S. Hot jobs report came out way stronger than anyone expected. This wasn’t just bad timing – it completely killed hopes for a Fed rate cut in July. If you’re wondering why your Bitcoin portfolio suddenly looked different, here’s what happened and what it means for your investments.
Hot Jobs Report Caught Everyone Off Guard
The June jobs numbers were scorching hot. Way more jobs got created than economists predicted, and unemployment actually dropped when most people thought it would stay flat. Here’s the kicker – even May’s numbers got revised higher, jumping from 139,000 to 144,000 new jobs.
The moment these nonfarm payrolls impact Bitcoin price became clear. Traders who were betting on easy money from the Fed suddenly realized they had it all wrong. When the job market is this strong, the Fed doesn’t need to cut rates to help the economy. That’s exactly what happened Thursday morning.
The Kobeissi Letter described the figures as “very hot,” noting that May’s job numbers were revised upward from 139,000 to 144,000. This revision, combined with the June surprise, created a perfect storm for Bitcoin price drops today as investors recalibrated their expectations for Fed policy.
Fed Rate Cut News Reshapes Market Expectations
The employment data jobs report fundamentally altered the Fed rate cut news landscape. Prior to the release, private-sector employment indicators had supported the case for monetary easing, but the official government statistics told a different story. Crypto research firm Material Indicators stated that the data effectively “takes a Fed rate cut in July off the table.”
This shift in expectations is reflected in Fed Funds Futures, which now price in just two rate cuts by the end of 2025, according to Bitwise’s Andre Dragosch. The dramatic reduction in easing expectations explains why Bitcoin price vs Fed rate hike dynamics played out so forcefully in Thursday’s trading session.
Technical Analysis Points to Critical Support
Even though Bitcoin price drops today hurt, the Bitcoin technical analysis shows some important levels you need to watch. The $108,000 mark is where Bitcoin needs to hold its ground right now. This isn’t just some random number – it’s where the real buying interest sits.
Master of Crypto, a well-known trader, isn’t panicking. He’s actually bullish on the BTC price prediction: “As long as we stay above $108K, I’m aiming for $112Kâmaybe even $120K.” He’s looking at where the big money is positioned, and that BTC technical support level 108K could be the springboard for Bitcoin’s next leg up.
Why Did Bitcoin Price Fall After U.S. Jobs Data?
It’s simple math, really. When you understand how payroll numbers affect Bitcoin price, the whole picture becomes clear. Strong jobs report data means the Fed won’t cut rates anytime soon. And when rates stay high, investors dump risky assets like Bitcoin and buy safer stuff like bonds.
Think about it this way: if the economy is doing great and people have jobs, why would the Fed need to make borrowing cheaper? They wouldn’t. Instead, they might even raise rates to keep inflation in check. That’s terrible news for Bitcoin price vs Fed rate hike scenarios, because crypto thrives when money is cheap and easy to get.
Crypto Market Reaction to Strong Jobs Report
Bitcoin price wasn’t alone in taking a hit. The whole crypto market got hammered when this jobs report dropped. This crypto reacts to jobs report dynamic shows you just how tied together traditional markets and digital assets have become.
Keith Alan from Material Indicators put it perfectly: “A lower unemployment rate means a stronger U.S. economy. While BTC dropped in the short term, long-term fundamentals remain intact.” He’s right – just because Bitcoin took a beating today doesn’t mean the bigger picture has changed.
Federal Reserve July Meeting Implications
Here’s what you need to know about the Federal Reserve July meeting: it just became way more important. Will Fed raise or cut rates in July 2025? After today’s jobs report data, a rate cut looks almost impossible. The Fed simply doesn’t have a reason to cut rates when the job market is this hot.
This Fed pivot delay is bad news for Bitcoin in the short term. The July Fed decision and Bitcoin price correlation is real – when the Fed stays hawkish, Bitcoin usually struggles. Until we see some weakness in the economy or inflation cooling off, Bitcoin might stay under pressure.
Bitcoin Price Prediction After Fed Decision
Here’s your roadmap for what comes next. The Bitcoin price prediction after Fed decision is pretty straightforward – everything depends on whether BTC can hold $108,000. If it breaks below that level, you might see a deeper BTC correction down to $100,000 or even lower.
But if Bitcoin holds that support? The Bitcoin reversal pattern after 110K suggests we could see another run higher. The key is watching how Bitcoin reacts to the next Fed announcement and any changes in their tone.
The Smart Money Play Right Now
Today’s selloff shows you exactly how macroeconomic indicators crypto can’t escape. Strong jobs data caused this risk assets sell-off, and Bitcoin got dragged down with everything else. But if you’ve been in crypto for a while, you know that Bitcoin price volatility cuts both ways.
The July Fed decision and Bitcoin correlation isn’t going anywhere. When the Fed talks tough, Bitcoin gets hurt. When they hint at easier money, Bitcoin price flies. Right now, we’re in the tough talk phase.
But here’s what the pros know: Bitcoin news after July Fed meeting could flip the script overnight. If economic data starts looking shaky or inflation drops faster than expected, the Fed might change their tune. When that happens, Bitcoin could bounce back faster than you think.
Your job right now? Watch that $108,000 level. If Bitcoin holds there, you might be looking at your next buying opportunity. If it breaks, step aside and wait for a better entry point. The market will tell you what it wants to do – you just need to listen.