Bitcoin Slips to Two-Month Low as Traders Eye U.S. Jobs Data and ETF Outflows

Bitcoin extended losses on Monday, sliding to its weakest level in two months as heavy whale selling, soft ETF flows, and broader risk-off sentiment weighed on the crypto market.

Bitcoin Hits Fresh Two-Month Low

• The world’s largest cryptocurrency dropped 0.8% to $107,994.6 by 02:42 ET (06:42 GMT).
• It earlier touched $107,274.6, its lowest since early July.
• Bitcoin has now lost over 10% since its August record above $124,000.

Whale Selling and ETF Outflows Pressure Prices

• Media reports flagged large transfers from dormant whale wallets, with funds converted into Ether, signaling profit-taking by big holders.
• U.S. spot Bitcoin ETFs continued to log outflows, contrasting with strong Ethereum ETF inflows last month—highlighting a shift in institutional preference.

Seasonal Weakness Adds to Bearish Tone

• Bitcoin’s pullback aligns with its historical September weakness, often referred to as “Red September,” when risk assets face higher volatility and reduced investor appetite.

Rate Cut Bets in Focus Ahead of Jobs Report

• Markets see an 89% chance of a 25 bps Fed cut in September (CME FedWatch).
• Fed Chair Jerome Powell recently acknowledged risks to the labor market, signaling potential policy adjustments if inflation continues to moderate.
• Friday’s U.S. nonfarm payrolls report will be pivotal in cementing rate cut expectations.

Broader Headwinds: Tariffs & Fed Independence

• Market unease also stems from Trump’s shifting tariff policies and his attempt to dismiss Fed Governor Lisa Cook, a move raising concerns over Fed independence.

Crypto Market Snapshot: Altcoins Mixed

• Ethereum (ETH): down 0.8% to $4,398.68.
• XRP: slid 3.3% to $2.73.
• Solana: -1.6%, Cardano: -2.8%, Polygon: +3.6%.
• Meme tokens were volatile: Dogecoin fell 2.8%, while $TRUMP gained 3.3%.