Bitcoin Fails to Hold $116K as Fed Rate Cut Expectations Rise
Bitcoin faced rejection near $116,000 as bullish momentum weakened, pushing prices toward three-week lows. The decline came despite positive signals from the U.S. labor market, which had initially raised hopes for a sustained rally.
Traders had anticipated that strong jobs data would support risk assets, including Bitcoin, but the cryptocurrency struggled to maintain upward momentum. Market sentiment was further influenced by growing expectations of a Federal Reserve rate cut, with traders now pricing in over a 75% chance of easing monetary policy in the near future.
The lack of follow-through in Bitcoin’s price action suggests that buyers remain cautious. While macroeconomic factors like employment figures and Fed policy typically impact crypto markets, Bitcoin’s recent performance indicates that other factors, such as profit-taking or reduced demand, may be at play.
Analysts note that Bitcoin’s inability to break through key resistance levels signals short-term bearish pressure. If selling continues, the next major support zone could come into focus, potentially testing the patience of long-term holders.
Despite the pullback, some traders remain optimistic, viewing the dip as a buying opportunity ahead of potential Fed policy shifts. However, until clear bullish confirmation emerges, Bitcoin may continue to trade within a tight range, with volatility likely to persist in the coming weeks.
