Bitcoin's Next Decisive Point: '$80,000'... US Employment Shock Shatters Interest Rate Cut Expectations

▲ Bitcoin (BTC)

Bitcoin (BTC) has entered an intense battle between buying and selling forces over the recovery of $80,000. As US April employment figures significantly exceeded market expectations, hopes for interest rate cuts weakened, and Bitcoin showed high volatility around $80,000 immediately after Wall Street opened.

According to Cointelegraph on May 8 (local time), Bitcoin attempted to reclaim $80,000 at the time of the US Wall Street opening, but strong employment figures acted as a burden. According to TradingView data, Bitcoin fluctuated around the key price level of $80,000, failing to determine its direction.

The US Bureau of Labor Statistics announced that non-farm employment in April increased by 115,000. This figure significantly exceeded market expectations of 65,000. February employment was revised down from an initial decrease of 133,000 to a decrease of 156,000, and March employment was revised up from an increase of 178,000 to an increase of 185,000. Combined employment for the two months was 16,000 lower than previously reported. The unemployment rate remained unchanged at 4.3%.

As the employment figures came out stronger than expected, Bitcoin faced downward pressure immediately after the announcement. A robust job market reduces the need for the US Federal Reserve to ease financial conditions. Cointelegraph reported that recent Federal Reserve meetings also signaled a low probability of interest rate cuts and the establishment of tighter conditions.

Market expectations are also changing. According to CME Group's FedWatch tool, the market is even pricing in the possibility of an interest rate hike at the Federal Open Market Committee meeting on June 17. For Bitcoin, this creates a structure where weakened liquidity expectations and interest rate burdens act simultaneously.

Traders did not yet see the short-term uptrend as completely broken. Crypto trader Daan Crypto Trades stated that Bitcoin is retesting previous range highs, adding, 'The rebound so far is good, but this area is a key price level that buyers must defend.'

Trading account Cryptic Trades analyzed that Bitcoin is retesting the bull market support band, which consists of two daily moving averages. He stated, 'This looks like a healthy bullish retest before further upside.'

However, short-term peak warnings were also raised. Cointelegraph previously reported that Bitcoin's Relative Strength Index showed an overbought signal, warning of a potential short-term peak. With strong employment figures, changing interest rate expectations, and the battle for $80,000 overlapping, the Bitcoin market has entered a volatile period before its direction is determined.

Bitcoin buyers face the challenge of continuing the short-term uptrend by recovering $80,000. In a situation where the employment figure surprise has lowered interest rate cut expectations, whether $80,000 can be sustained has emerged as a key criterion for determining the next price movement.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*