Bitcoin is facing a rough patch. The price has dropped close to US$113,000, and traders are worried the slide may get deeper. The drop comes as U.S. Federal Reserve Vice-Chair Michelle Bowman signals that faster interest rate cuts may be needed due to rising risks in the labor market.
Cointelegraph
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What’s Happening with Bitcoin
Bitcoin recently fell from a high near US$115,000, slipping down toward US$112,000–113,000. This level is now being watched closely as a support line.
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If this support breaks, some traders believe Bitcoin could drop further, possibly toward US$108,000.
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On the flip side, if the support holds, $115,000 and above may again become resistance levels (prices that are hard to cross).
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What Bowman Said and Why It Matters
Michelle Bowman, speaking at a banking event in Kentucky, warned that the labor market is showing signs of weakening. She said the Fed might already be “behind the curve.” If economic demand worsens, she believes interest rates may need to be cut faster and more aggressively.
Reuters
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Bowman’s view is part of a broader debate within the Fed: how fast should rates come down? Some officials want to wait until inflation comes fully under control, others think supporting jobs and growth is more urgent.
Reuters
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Why This Affects Bitcoin
Interest rates and crypto prices often move together. When rates are high, borrowing money costs more, and investors may pull back from risky assets like Bitcoin. Lower rates usually help riskier assets get more interest.
Momentum in markets matters a lot: If big traders believe Bitcoin will fall, they may sell, which can push the price down further. If enough of them think there will be rate cuts, they may buy, supporting the price.
Also, Bitcoin often moves in line with the tech stock markets. If stocks drop (for example because traders fear rate cuts won’t be enough, or inflation stays high), Bitcoin can get dragged down too. Some analysts are watching the Nasdaq index and its relative strength metrics (RSI) as warning signs.
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What Traders Are Saying
Some analysts see $106,000–108,000 as a possible “max buy zone” if Bitcoin falls. That means they may buy in if the price reaches that range.
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Others are checking moving averages (like the 100-day EMA) and other technical indicators. If those break, it could mean more downward pressure.
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What to Watch Next
Will Bitcoin hold the $113,000 support level, or will it slide below? Breaking down could trigger more falling.
How future statements and data about jobs, inflation, and GDP shape expectations for rate cuts. If labor market weakens more, Bowman’s suggestions might push the Fed toward quicker cuts.
The behavior of tech stocks — because if they struggle, it might drag Bitcoin down.
Market sentiment, especially among big Bitcoin holders (whales) and institutional investors. Their moves could swing price more than small traders.
In simple words: Bitcoin is having trouble staying above $113,000. One reason is that people are watching the U.S. economy closely. If jobs get worse or demand drops, the Fed may cut rates faster. That could help Bitcoin, but only if good signs follow. For now, the price is bouncing between risky moments and potential relief.
