Bitcoin drops 4% to $63,000 after jobs data

Bitcoin’s seven-day rally has lost steam after briefly touching $65,000 today, a level last seen in mid-April. The world’s largest cryptocurrency is now trading near $63,000, down about 4% from its weekly peak. While the bounce shows short-term buying interest, broader market sentiment remains cautious as investors weigh interest rates, regulatory moves, and macroeconomic risks.

The latest swing comes after a month of volatility driven by shifting expectations around U.S. Federal Reserve policy. Earlier in June, Bitcoin surged past $70,000 following softer inflation data and growing bets on a September rate cut. But those gains were pared this week as stronger-than-expected U.S. jobs data and hawkish Fed commentary reminded traders that rate cuts may not arrive as soon as hoped. Meanwhile, large Bitcoin transfers from dormant wallets—often seen as a sign of potential selling—added to bearish pressure.

Analysts say the $65,000 level now acts as a key resistance point. If Bitcoin fails to push through it again, the next support sits around $60,000, a level tested multiple times in recent weeks. On-chain data shows whale movements remain subdued compared to earlier in the year, suggesting large holders aren’t rushing to exit—but aren’t piling in either. Futures markets show funding rates have turned slightly negative, a sign of cautious positioning.

What happens next depends largely on macro cues. A Fed rate cut in September would likely reignite the rally, with targets around $75,000 back in play. But if inflation stalls or geopolitical tensions escalate, Bitcoin could quickly retreat toward $55,000. Traders are eyeing the next U.S. Consumer Price Index release and any new regulatory signals from Washington. For now, after a week of gains, Bitcoin is consolidating—neither bullish nor bearish, but waiting for the next catalyst.