My lovely people! What's going on with Bitcoin! 🚀 The king cryptocurrency was flirting with $110,000, but suddenly, bam! A bucket of cold water fell on it, making it retreat quickly. And who was the party pooper? None other than the employment data in the United States, which came out stronger than everyone expected. This made the markets forget that the Federal Reserve (Fed) was going to lower interest rates soon. Goodbye to the hope of Bitcoin soaring through the clouds in July! 😩

The thing is that many more jobs were created than forecasted, and unemployment fell more than expected! When this happens, the Fed thinks: "If the economy is doing well and a lot of people have jobs, why are we going to lower rates? Better to keep them steady so inflation doesn't get out of control." And of course, when interest rates don't go down, money is more expensive, and people are less inclined to invest in "risky" things like Bitcoin. It's a chain! ⛓️

According to experts, like those from The Kobeissi Letter, these employment figures are "very high" and give the Fed another perfect excuse not to change rates. Even Andre Dragosch from Bitwise says that only two cuts are now expected until December 2025. What a situation! This contrasts with what was thought the day before, which raised hopes for a cut in July. But well, that's how the financial world works, one day you're up and the next you have to slow down! 🎢

What awaits Bitcoin: more increases or a breather? 📈🧐

But watch out! Not everything is drama in the crypto neighborhood. Despite the stumble, there are still those who have a lot of faith in Bitcoin. Keith Alan from Material Indicators says that a stronger U.S. economy ultimately benefits the market! Even though the price of BTC has dropped a bit due to the "instinctive reaction," he believes it's a short-term thing. So, don't despair! 🙏

The key levels for Bitcoin are now at $108,000. If it manages to stay above that figure, there is hope for it to rise to $112,000, and even $120,000! Can you imagine! 🚀

And on top of that, Markus Thielen, an analyst from 10x Research, is over the moon. He says that Bitcoin could reach $116,000 in July thanks to a "perfect storm" of factors. What are those factors?

  1. Strong inflows into spot Bitcoin ETFs: People are pouring money into these funds like crazy, indicating there is huge institutional demand. It seems that big investors are buying Bitcoin as if there's no tomorrow! 💰

  2. Uncertainty with the Federal Reserve: Although the employment data didn't help, political pressure on the Fed, even from Donald Trump, could make them soften and decide to cut rates in the future. Trump wants to see Powell out! If a new, more "flexible" Fed president comes in, hold on tight! 🤯

  3. Bitcoin leaving exchanges: It turns out that the amount of Bitcoin on trading platforms has been decreasing for 98 consecutive days! This is the longest drop since 2020, just before the last big market surge. Less Bitcoin on exchanges means people are holding it, and that creates scarcity. And you know what happens with scarcity, right?! The price goes up! 🚀

So, even though the employment data gave us a scare, it seems that Bitcoin still has several cards up its sleeve to keep surprising us. We need to stay very alert on this roller coaster! Will we see a new record in July? 🤑$BTC