Bitcoin (BTC) continues its downward slide, dipping below $108,000 as investor optimism over near-term U.S. interest rate cuts weakens. With macroeconomic uncertainty rising and a lack of fresh bullish catalysts, crypto markets remain cautious.
BTC Price Decline Amid Fed Uncertainty
As of May 28, Bitcoin traded at $107,189, hitting multiday lows, according to Cointelegraph Markets Pro and TradingView. The decline comes as markets digest the latest signals from the U.S. Federal Reserve.
“Markets now expect the first rate cut no earlier than September 2025,” per the CME FedWatch Tool.
This shift in sentiment is pressuring risk assets like cryptocurrencies, which typically benefit from lower interest rates.
Weak Labor Market Signals Could Change Outlook
While hopes for a rate cut have faded, some analysts believe deteriorating job market conditions may force the Fed to pivot sooner.
According to The Kobeissi Letter, consumer sentiment about job availability has declined for three years straight — a trend historically tied to upcoming rises in unemployment.
“This metric clearly suggests further increases in the unemployment rate,” the firm stated.
If unemployment spikes, the Fed may be pressured to cut rates earlier, potentially sparking a market rebound.
Technical Analysis: Short Liquidation Wall Looms
From a technical perspective, popular trader TheKingfisher highlighted a potential setup for volatility:
- Strong resistance between $108,900 and $109,200
- Massive short liquidation wall above that zone
- If BTC reclaims that level, a breakout could follow
“This creates a substantial imbalance biased towards short liquidations,” TheKingfisher explained.
Bitcoin Whales Are Buying the Dip
Despite the bearish trend, large holders (whales) are steadily accumulating BTC.
On-chain data shows increased whale activity near the $107K level — a bullish long-term signal.
This accumulation suggests smart money may be positioning for a future rebound, especially if macro conditions shift.
Conclusion
Bitcoin’s price has sagged below $108K, facing pressure from fading Fed rate cut expectations. However, weak labor market signals and whale accumulation could set the stage for a turnaround.
Investors should watch for signs of Fed policy changes and technical breakouts above $109K for a clearer direction.
