Following stronger-than-expected U.S. employment data, market expectations for near-term Fed rate cuts have continued to ease. As a result, Bitcoin briefly dropped to $63,282, falling nearly 3% on the day, with broader risk assets under pressure.
Employment data lowers expectations for rate cuts
Data from the U.S. Department of Labor showed that, for the week ending June 13, initial jobless claims totaled 226,000, below the revised 230,000 from the prior week. The day before this data was released, the Federal Reserve held interest rates steady at 3.50% to 3.75% at its June 17 meeting, marking its fourth consecutive pause.
The market is more concerned that the Fed remains cautious about its policy path through 2026. A resilient labor market has led traders to further reduce expectations for near-term rate cuts, prompting capital to flow out of high-volatility assets.
Bitcoin fell below $64,000
Amid weakening macroeconomic expectations, Bitcoin dropped below $64,000, triggering liquidations of leveraged long positions on major trading platforms. Although continuing jobless claims rose to 1.81 million, indicating the labor market is not uniformly strong, this signal failed to alter the market’s interpretation of overall employment data.
CoinGlass data shows that a significant number of leveraged positions are clustered between $63,000 and $63,500, with additional liquidity near $61,000 and $62,000. Above, there are short liquidation zones near $65,000 and $66,500, suggesting that short-term price volatility may continue to increase.
- Bitcoin's intraday low: $63,282
- Key support area: approximately $62,400
- Recent low point: approximately $59,175
The market is watching the $62,400 support level.
From a technical perspective, Bitcoin has broken below the upward channel formed since its rebound on June 5, with a key support level near $62,400. If the daily candle closes below this level, the market may retest the June low around $59,175.
Several market observers have also focused on this support level. If the price fails to stabilize within the current range, the altcoin market may face increased pressure. Conversely, if Bitcoin regains the previously lost range and reclaims the $64,950 to $66,700 area, signs of relief in selling pressure may emerge.
In addition to price trends, upcoming U.S. inflation data and statements from Federal Reserve officials will continue to influence market expectations regarding the timing of rate cuts and impact the short-term performance of crypto assets.