Bitcoin Rejects $76K as Rate-Cut Odds Jump Post Weak Jobs Data

• Bitcoin faltering at $76,000 as weak U.S. jobs trigger rate cut talks.
• Labor market uncertainty sparking trading debate; BTC traders bracing for short squeeze.

On August 2, 2024, Cointelegraph reported Bitcoin faced rejection at $76,000, as weak U.S. jobs data tilted Federal Reserve (Fed) rate cut odds above 65%. The July nonfarm payroll report revealed an increase of only 183,000 jobs, well below the anticipated 200,000. This disappointing performance has fueled concerns over a slowing labor market and heightened economic uncertainty.

Analysts added to the unease by highlighting significant downward revisions for May and June jobs data. This compounded fears of waning employment growth. As a result, market participants are reassessing the Fed's potential policy direction, with many speculating an imminent shift.

Data from the CME Group's FedWatch Tool showed a sharp rise in the probability of a September rate cut, now exceeding 65%. Market sentiment is adjusting rapidly. Investors increasingly view lower interest rates as a likely response to the deteriorating labor backdrop. This shift influences strategies across both traditional and cryptocurrency markets.

Meanwhile, in the Bitcoin market, traders remain split over the $76,000 price rejection. Some argue that reclaiming this level is critical to preventing further downside pressure. However, others anticipate a potential short squeeze, citing significant buy orders below $75,000 on platforms like Bitfinex. This activity suggests a strong dip-buying sentiment among specific market participants.

Despite the rejection at $76,000, Bitcoin achieved its highest monthly close to date, settling at $75,800 for July. Analysts described the current price action as a possible bullish retest of key support levels. Historical patterns indicate that August often delivers strong performance for Bitcoin in post-halving years, with gains in prior cycles ranging between 24% and 55%.

The crypto market's Fear & Greed Index, which tracks investor sentiment, dipped slightly following the rejection but remains in the "greed" zone. This indicates that optimism persists despite near-term price fluctuations and broader macroeconomic concerns.

As of August 2, 2024, 14:37 UTC, Bitcoin (BTC) is trading at $75,075.19, with a 3.54% decrease in 24-hour trading volume, according to CoinMarketCap.