Bitcoin (BTC) experienced a surge in volatility on Friday, September 5, outpacing the rest of the cryptocurrency market. This increase in volatility came in response to key data released by the Bureau of Labor Statistics regarding employment levels.
Market data from TradingView indicated that the BTC/USD pair saw a significant uptick during the late London session, reaching a peak of around $113k in the early New York session. However, these gains were short-lived as the price retraced to approximately $110,713 during the mid New York session.
The sudden fluctuation in Bitcoin’s price was directly tied to the announcement that the U.S. economy had only added 22k jobs in August, falling well below the expected 75k. This disappointing data caused the U.S. unemployment rate to reach its highest level since October 2021.
Traders reacted to this news by adjusting their expectations for the Federal Reserve’s upcoming meeting on September 17, 2025. Market data from Kalshi revealed that the likelihood of a 25bps rate cut by the Fed had surged to a record high of 89%. Furthermore, there was a growing belief among traders that the Fed might implement a rate cut larger than 25 bps in September.
Despite these high odds of a rate cut, Bitcoin experienced a drop in price on Friday. This decline was attributed in part to decreased demand from institutional investors, as evidenced by a net cash outflow of $227 million from U.S. spot BTC ETFs. Additionally, the recent surge in gold prices to a new all-time high of $3,600 per ounce diverted liquidity away from the Bitcoin market, with countries like El Salvador purchasing significant amounts of gold.
Looking ahead, Bitcoin’s price is expected to retest the support range between $107.5k and $108k after being rejected at the $113k resistance level. Should buyers fail to defend this support level, further correction may be on the horizon.
Crypto analyst Michaël van de Poppe has suggested that Bitcoin could potentially dip to around $103k before bouncing back to reach a new all-time high in the coming months. This forecast underscores the unpredictable nature of the cryptocurrency market and the need for investors to stay vigilant in the face of volatility.