Key Takeaways:Bitcoin briefly touched $110.3K before retracing on stronger-than-expected U.S. employment data.June nonfarm payrolls and a drop in unemployment reduce the likelihood of a July Fed rate cut.Fed Funds Futures now price in just two rate cuts by the end of 2025.BTC must hold $108K support to maintain bullish momentum toward $112K–$120K.Bitcoin Dips Below $110K as Strong U.S. Jobs Report Weakens Case for July Fed Rate CutBitcoin (BTC) saw sharp intraday volatility on Thursday, briefly rising to $110,300 before reversing lower as stronger-than-expected U.S. nonfarm payrolls (NFP) data cast doubt on imminent Federal Reserve rate cuts.According to Cointelegraph Markets Pro and TradingView, BTC/USD quickly gave up gains during the U.S. market open, dropping back to around $109,400 as traders digested the surprise data.“Very Hot” Jobs Data Pressures Risk AssetsThe June NFP report showed more jobs added than forecast, alongside a lower-than-expected unemployment rate, suggesting continued strength in the U.S. labor market.“The May jobs number was revised UP from 139,000 to 144,000. The headline numbers continue to crush expectations,” wrote The Kobeissi Letter on X, calling the figures “very hot.”The update sharply contrasted with earlier private-sector data that had supported the case for a rate cut, and it now removes near-term easing expectations, particularly for the Fed’s July meeting.Crypto research firm Material Indicators said the data effectively “takes a Fed rate cut in July off the table.” That sentiment was echoed by Bitwise’s Andre Dragosch, who noted that Fed Funds Futures now price in just two cuts total by December 2025.The CME FedWatch Tool confirmed a sharp repricing, with the majority of market participants now expecting the next rate cut no sooner than September.Bitcoin Liquidity and Support LevelsDespite the macro-driven dip, analysts pointed to strong liquidity structure on both sides of Bitcoin’s current range. According to CoinGlass, BTC continues to trade within well-defined guardrails, with $108,000 acting as key short-term support.“As long as we stay above $108K, I’m aiming for $112K—maybe even $120K,” said crypto trader Master of Crypto, referencing liquidity maps and spot order flow.Co-founder of Material Indicators Keith Alan remained optimistic despite the pullback:“A lower unemployment rate means a stronger U.S. economy. While BTC dropped in the short term, long-term fundamentals remain intact.”Outlook: Macro Sentiment vs. Technical MomentumBitcoin’s short-term direction will now hinge on whether $108K holds as support, while macro traders continue watching for any further signs of inflation moderation or economic cooling that could revive Fed pivot expectations.Until then, BTC’s push through final resistance near $110K–$112K may remain capped, with macro headwinds dominating market sentiment.
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