BTC Price Climbs Despite Strong U.S. Jobs Report, But Market Fragility Persists
BTC Price – Bitcoin (BTC) regained momentum on June 6, trading above $104,000 as U.S. President Donald Trump shifted focus from his online feud with Elon Musk to renewed criticism of Federal Reserve Chair Jerome Powell, urging aggressive interest-rate cuts. According to Cointelegraph Markets Pro and TradingView, BTC/USD climbed 2.5% despite strong U.S. job data that challenges the case for immediate rate cuts.
Trump Pushes for Rate Cuts Amid Strong Labor Data
Trump reignited pressure on the Fed, posting on Truth Social that delays in cutting rates would be a “disaster,” referencing Powell’s stance and contrasting it with the European Central Bank’s 10 rate cuts. He called for a “full point” rate cut, labeling it “Rocket Fuel” for the economy — and by implication, for risk assets like Bitcoin. However, according to CME Group’s FedWatch Tool, markets see minimal probability of a rate cut before September.
Meanwhile, official figures from the U.S. Bureau of Labor Statistics (BLS) showed that nonfarm payrolls increased by 139,000 in May, while the unemployment rate remained unchanged at 4.2%, signaling labor market resilience.
Analysts Warn of BTC Liquidity Trap
Despite BTC’s rebound, analysts flagged potential downside risks. Popular trader TheKingfisher pointed to a concerning liquidity imbalance in the order books, warning of a “liquidation trap.” According to him, a cluster of long liquidations between $99K and $102K could act as a magnetic pull for prices, especially as short liquidations above $104.5K remain minimal.
“The imbalance of bid vs. ask liquidity increases the probability of a cascading sell-off,” he noted, cautioning traders not to mistake this zone for support.
As Bitcoin navigates macro volatility, rate policy speculation, and liquidity stress, market watchers remain alert for short-term shocks.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
