Bitcoin drops below $78,700 as hot jobs data dents rate-cut bets

Bitcoin fell more than 2 percent to about $79,500 Friday after hot US jobs data cut Federal Reserve rate-cut odds, unwinding a rally above $82,000.

Leveraged long positions liquidated across crypto markets topped $295 million, versus $213 million in shorts, with longs making up nearly 55 percent of roughly $193 million wiped out by 17:23 UTC, Coinglass data shows.

The reversal followed a US employment report showing the economy added 336,000 jobs, far exceeding the 170,000 to 180,000 consensus, while unemployment held at 3.8 percent. The print pushed investors to price out the near-term Fed easing that the Trump administration had sought, dragging stocks and digital assets lower and cutting Bitcoin's market capitalization to $1.57 trillion from $1.62 trillion.

Bitcoin had climbed above $82,000 for the first time in more than three months, peaking at $82,281, before sliding from just over $81,300 to $79,428 in under 20 minutes at 13:30 UTC. It broke below $78,700 around 15:50 UTC and recovered within the hour. Support held near $78,700, with resistance at the $82,281 intraday peak.

The liquidation dynamic flipped sharply through the session. Shorts dominated forced selling before 08:00 EST, but longs took over within four hours of the jobs release as the token reversed course. Because the sell-off extended into altcoins, the deleveraging hit the broader market rather than a single asset, lifting total long liquidations across crypto to $295 million.

The episode shows how tightly Bitcoin now tracks US rate expectations after a stretch in which bets on Fed easing had driven its advance. The failure to hold $82,000, a level not seen in more than three months, marks a setback for bulls who had wagered on a sustained breakout. If upcoming data keeps rate-cut odds suppressed, traders could face further liquidation cascades, with the token's next downside test below $78,700.

Not all participants read the pullback as a break in the broader trend. Raoul Pal, founder of Real Vision, argued on X that currency debasement will keep pushing assets higher, noting Bitcoin has beaten the debasement rate by 89 percent a year versus about 12 percent for the Nasdaq. He called crypto "the most powerful asset we've ever had."

This article is for informational purposes only and does not constitute investment advice.