Bitcoin price has declined to a 7-month low.

The price of Bitcoin is drawing the attention of investors with recent developments. Following the strong employment report from the U.S. that weakened expectations for interest rate cuts, Bitcoin (BTC) faced intense selling pressure. The delayed employment data released on Thursday night caused a new fluctuation in the Bitcoin price, pushing the market down to the $85,700 level.

This price represents a 32% decline from the $126,000 level that Bitcoin reached in October. While the overall market decline stands at 6.62%, the Crypto Fear and Greed Index is at just 11 points, indicating that excessive fear continues to prevail in the market.

The delayed non-farm payroll report for September revealed that the U.S. economy created 119,000 new jobs. This figure, which came in well above expectations, is interpreted as a signal that inflationary pressures continue. Vincent Liu, Chief Investment Officer of Kronos Research, emphasized that this strong employment data has weakened the likelihood of an interest rate cut expected in December. Liu stated that the current liquidity is weak and that this has deepened the decline in short-term profit-taking.

According to CME FedWatch Tool data, the probability of a 25 basis point interest rate cut in December is at 35.4%. According to Liu, the Bitcoin price may respond to a possible interest rate cut in the short term. However, for a sustainable rise, four conditions must be met: the Federal Reserve must halt balance sheet reductions, new capital inflows must occur, strong on-chain demand must be present, and market sentiment must change.

Nick Ruck, Director of LVRG Research, evaluated the current decline as a healthy repricing of positions following last month's rapid rise. Ruck stated that the selling pressure in on-chain data is beginning to stabilize and that the capitulation process is nearing its end. Investors need to carefully monitor these fluctuations in the Bitcoin price and reassess their strategies according to developments.