Bitcoin sags below $108K as rate-cut bets evaporate before Fed minutes

Bitcoin sags below $108K as rate-cut bets evaporate before Fed minutes Bitcoin eyes fresh multiday lows with risk assets suffering from a lack of volatility catalysts and fading hopes of a Fed rate cut before September. Key points: Markets increasingly see fewer Fed rate cuts this year, with the first only coming in September. Despite potential labor market weakness to come, crypto and risk assets lack an overall bullish catalyst, analysis says. BTC/USD continues to drop toward new multiday lows. BTC price retreats with Fed rate cut bets Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping below $108,000 to challenge multiday lows. Ahead of the minutes of the Federal Reserve’s May meeting, the mood among risk assets was cautious. CME Group’s FedWatch Tool showed decreasing odds of a rate cut — a key tailwind for crypto, stocks and more — before September. Informal sentiment likewise continued to deteriorate on the day, with prediction service Kalshi seeing just two cuts in 2025, down from four in early April. In its latest analysis, trading resource The Kobeissi Letter nonetheless revealed a potential silver lining. Consumer sentiment over the labor market, it reported, was flashing classic signs of a forthcoming unemployment spike — something which could force the Fed to bring rate cuts forward. “The assessment of current job availability has also decreased over the last 3 years. In previous economic cycles, this metric has been a leading indicator for unemployment,” it told X followers.