Bitcoin rejected the USD 116K level despite the data on employment in the U.S.

Bitcoin bulls are struggling to keep the market away from new three-week lows, despite potential tailwinds from the U.S. labor market.

Bitcoin rebounds amid lack of employment momentum in the U.S., increasing the odds of a rate cut

Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair was being sold at the start of the U.S. stock market session, again pointing to local lows.

Nervousness over a series of new U.S. tariffs had caused the pair to fall to USD 114,116, and traders were divided on what might happen next.

However, the data on U.S. employment helped improve sentiment, although July's non-farm payrolls came in at 73,000, well below the estimate of 100,000, indicating that the labor market is beginning to face difficulties.

This, in turn, increased the odds that the Federal Reserve would cut interest rates sooner than expected, just days after Fed Chairman Jerome Powell adopted an aggressive tone on future policy.

The latest data from the CME Group's FedWatch Tool showed that market expectations were again favoring a rate cut at the Fed's September meeting.

Comparison of the Fed's target rate for the September FOMC meeting (screenshot). Source: CME Group

In response, the trading resource The Kobeissi Letter questioned the revisions of the employment data and the figures that contrast with the Federal Reserve's view on the strength of the labor market.

"There are two possible scenarios following today's data: 1. The U.S. labor market is entering a recession. 2. There is something off in the data," it wrote in posts on X, labeling the downward revisions for May and June as "massive."