Bitcoin tumbles toward $63K as strong jobs data reinforces a hawkish Fed
Bitcoin tumbled nearly 3% toward $63,000, with BTC trading around $63,282 after U.S. labor-market data strengthened the Federal Reserve’s hawkish outlook and reduced expectations for near-term rate cuts. Initial jobless claims fell to 226,000 (week ended June 13), down from a revised 230,000. Coming right after the Fed held rates at 3.50%-3.75% on June 17 and signalled potential additional tightening in 2026, traders moved to reduce risk exposure.
Derivatives turned defensive as Bitcoin slipped below $64,000 and leveraged long positions were liquidated on major exchanges. While continuing unemployment claims rose to 1.81 million, the market focus stayed on the lower headline jobless claims.
Technically, Bitcoin broke below an ascending channel on the 4-hour chart and lost key Fibonacci support near 64,950 (61.8%). The next critical support is around $62,400 (78.6%). A daily close below $62,400 could expose the June low near $59,175, matching a measured downside target. Momentum also weakened: 4H RSI slipped to ~38 and MACD turned more bearish, while Chaikin Money Flow remained negative (~-0.12).
CoinGlass liquidation data points to dense long leverage between $63,000 and $63,500, with further liquidity pockets near $61,000 and $62,000 and larger short/liquidation zones overhead around $65,000 and $66,500. Analysts warn that if Bitcoin support fails, a retest of the $60,000 area and possibly June lows becomes more likely.
Bearish
This news is bearish for crypto because stronger-than-expected U.S. jobs data pushed markets to price fewer/less-urgent rate cuts, reinforcing hawkish Fed expectations. In the short term, that typically tightens financial conditions and increases the probability of risk-off flows—exactly what the article shows via BTC long liquidations and a defensive turn in derivatives. A parallel can be seen in prior “hawkish data / hawkish repricing” episodes (often around major U.S. macro releases), where BTC tends to break nearby technical supports first, then accelerates lower toward the next liquidity pool.
Technically, Bitcoin is not merely drifting lower; it broke an ascending channel and lost a key Fibonacci level near $64,950. With $62,400 positioned as the next make-or-break support, the market is primed for a momentum-driven move lower if that level fails. The presence of a dense liquidation cluster between $63,000 and $63,500 can amplify volatility, causing cascades rather than a smooth downtrend.
Longer term, hawkish policy expectations can keep discount-rate pressure elevated, which usually caps rallies until either inflation cools or labor-market strength eases. However, the story also implies a potential “tradeable” inflection point: if BTC reclaims the broken channel/support zone ($64,950-$66,700), it would signal that the hawkish shock has been absorbed. Until then, the balance of evidence favors downside liquidity seeking and continued volatility for Bitcoin and higher-beta altcoins.