Bitcoin (BTC) has been leading the altcoin market in a mild retrace on Tuesday, September 9th, with the flagship coin facing rejection at the $113k resistance level. This led to a 1.1% retracement, bringing the price down to around $110,822. The wider altcoin industry followed suit, resulting in a daily net liquidation of leveraged positions totaling approximately $370 million, primarily impacting long traders.
Top Reasons Why Bitcoin Price Dropped Today
Downsized Biden’s Era Job Figures
One of the key factors influencing the drop in Bitcoin price today was the revelation that Biden’s job figures were inflated. The Bureau of Labor Statistics announced a downward revision of job growth by 911k for the period between April 2024 and March 2025. This news had a significant impact on the market sentiment, contributing to the decline in Bitcoin price.
Upcoming U.S. CPI Data
Another contributing factor to the decline in Bitcoin price was the anticipation of the upcoming U.S. Consumer Price Index (CPI) data for August. Analysts at JPMorgan projected a 2.9% year-over-year (YoY) increase in CPI, with core CPI expected to remain steady at 3.1% YoY. The market response to the CPI data will be crucial in determining the future direction of Bitcoin price.
Will the Fed Initiate a Rate Cut?
There has been speculation about the possibility of a rate cut by the Federal Reserve in response to the uncertain economic conditions. The odds of a 25 basis points rate cut have decreased slightly on platforms like Kalshi and Polymarket, but they remain elevated. According to JPMorgan, there is a likelihood of a rate cut next week, given the uncertainty surrounding the CPI data.
In conclusion, the Bitcoin price drop today can be attributed to a combination of factors, including the downsized job figures, anticipation of the CPI data, and speculation about a potential rate cut by the Federal Reserve. Traders and investors will be closely monitoring these developments to gauge the market sentiment and make informed decisions about their positions.