Bitcoin dropped to $110,658 on Bitstamp Thursday as strong US jobs data pressured risk assets across the board. The move came alongside declines in stocks and gold, with analysts calling it a “long-overdue but healthy” correction.
US Jobs Data Triggers Market Pullback
Fresh labor market data showed jobless claims coming in lower than expected, signaling that the slowdown in employment may not be as severe as feared. This reduced market confidence in imminent Federal Reserve rate cuts.
As a result, the US Dollar Index (DXY) surged to a three-week high, intensifying selling pressure on crypto, equities, and gold.
“Just like that, initial jobless claims are no longer a worry,” commented Ryan Detrick, Chief Market Strategist at Carson Group, on X.
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$110K – Bitcoin’s Key Level to Watch
Market analytics firm Swissblock warned that Bitcoin is now in a “delicate balance.”
“Bitcoin has lost $113K and is now trading below $112K — a retest of $110K looks imminent,” the firm posted on X.
Swissblock added that BTC must reclaim $115,200 to have a chance at revisiting the top of its range. Losing $110,000 could open the door for a deeper move toward $100,000.
Options Expiry Adds Extra Pressure
Another factor weighing on Bitcoin is Friday’s $17.5 billion options expiry. Analysts noted that touching $110K could leave most of these contracts worthless.
Still, some traders are betting on a short squeeze. Data from TheKingfisher shows an overwhelming dominance of short positions, which could trigger a rapid upside move if prices reverse.
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