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Bitcoin Price Rejected at $113k Ahead of CPI Data: What is JPMorgan’s Take? - BTC Hunts
Bitcoin (BTC) price led the wider altcoin market in a mild retrace on Tuesday, September 9, during the mid-North American session. After attempting a bullish breakout earlier on Tuesday during the London session, the flagship coin was rejected at the resistance level around $113k, thus retracing 1.1% to hit a range low of about $110,822.
The wider altcoin industry followed in tandem, thus increasing the daily net liquidation of leveraged positions at around $370 million, with the majority involving long traders.
Top Reasons Why Bitcoin Price Dropped Today
Downsized Biden’s Era Job Figures
“Now it’s official: 2024 job gains were exaggerated by nearly 1M workers, and this is on top of an already reported 577K in downward revisions. This brings the Biden jobs overstatement to a staggering 1.5M,” Scott Bessent, Treasury Secretary noted.
Upcoming U.S. CPI Data
The downsizing of Biden-era jobs happened ahead of the upcoming CPI data for August. According to JPMorgan, August CPI is projected at 2.9% YoY, with core CPI steady at 3.1% YoY.
According to the bank, if the Core CPI is greater than 0.4%, the markets will record more losses. However, the bank noted that if the Core CPI comes in lower than 0.25%, the markets will rebound in anticipation of rate cuts.
Will the Fed Initiate a Rate Cut?
The odds of a 25 bps Fed rate cut reduced on Kalshi and Polymarket today, but remained elevated. According to JPMorgan, the Fed will initiate a 25 bps rate cut next week amid the CPI uncertainty
Bessent stated that the Fed ought to cut its benchmark interest rate since President Donald Trump inherited a worse economy than reported. As such, Bessent stated that President Trump is justified in pushing the Fed to cut rates as high rates have been choking the economy.