A Major Blow for Bitcoin
The plummeting Bitcoin price is causing concern among investors as the United States faces a historic wave of job cuts. With a downward revision of 911,000 jobs created between 2024 and 2025, investors fear an imminent recession that could prove disastrous for cryptocurrency.
At the time of writing, Bitcoin has maintained its support at $110,800 and is once again heading toward the resistance at $112,500, trading at approximately $111,900.
If BTC breaks and holds above $112,500, it will likely reach at least $114,000 thereafter. Conversely, a drop below $110,600 would trigger a decline below $109,000.
The US Economy at a Crossroads
Despite the negative employment news, the economic situation in the United States remains relatively stable. The unemployment rate stays at a historically low 4.3%, and the rise of artificial intelligence allows major tech companies to increase their profitability without creating new jobs. However, the fragility of the labor market raises questions about future prospects.
The coming days will be crucial for Bitcoin, with the imminent release of key indicators such as the Producer Price Index and Consumer Price Index (PPI and CPI). This data could have a decisive impact on the Federal Reserve’s monetary policy and, consequently, on the price of the leading cryptocurrency.
As Ted Pillows points out, the last 3 CPI announcements triggered drops of 9 to 11%. Caution and vigilance will be essential this week.
Related topics:
