Key points:
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Bitcoin quickly reversed gains as US nonfarm payrolls data beat expectations and unemployment fell more than thought.
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Analysis says that the Federal Reserve is now unlikely to lower interest rates at its July meeting.
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BTC price action still has to break through final liquidity to the upside.
Bitcoin (BTC) saw flash volatility into the Thursday Wall Street open as US employment data dealt a blow to hopes of interest-rate cuts.
”Very hot” US jobs numbers trip up Bitcoin bulls
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD retracing much of the day’s gains, which had seen the pair reach nearly $110,300.
US nonfarm payrolls data showed that more jobs were added in June than expected, while unemployment exceeded estimates.
“The May jobs number was revised UP from 139,000 to 144,000. The headline numbers continue to crush expectations,” trading resource The Kobeissi Letter wrote in part of a response on X.
Kobeissi described the jobs numbers as “very hot,” warning that the Federal Reserve now had another reason to delay rate cuts, a blow to crypto and risk assets.
Business consulting firm Blacknox, cofounders of crypto trading resource Material Indicators, went further, stating that the unemployment drop “takes a FED Rate Cut in July off the table.”
“Fed Funds Futures now just price in 2 cuts in total until December 2025,” Andre Dragosch, European head of research at crypto asset manager Bitwise, noted.
Nonfarm payrolls contrasted considerably with the previous day’s private-sector jobs report, which conversely boosted the case for a July cut.
The latest data from CME Group’s FedWatch Tool confirmed that markets saw little chance of the Fed changing course before its September meeting.
Liquidity guardrails still surround BTC price
Discussing market impact, Material Indicators co-founder Keith Alan was upbeat.
Related: Bitcoin profit-taking makes $140K key BTC price point: Research
“A lower UNRATE means a stronger US economy,” he responded to the Blacknox commentary.
“The knee jerk reaction has knocked $BTC price down a bit, but IMO this is short term thinking. In the long run, a stronger economy will serve the market well.”
Market structure likewise remained intact on short timeframes, monitoring resource CoinGlass confirmed, with exchange order-book liquidity levels both above and below price firmly in place.
Among traders, the $108,000 level continued to play an essential role, with analysis demanding it now hold as support.
— Daan Crypto Trades (@DaanCrypto) July 3, 2025
“As long as we stay above $108K, I’m aiming for $112K – maybe even $120K,” crypto YouTube trading channel Master of Crypto added, while reviewing the liquidity data.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
