Bitcoin (BTC) price led the wider altcoin market in a mild retrace on Tuesday, September 9, during the mid-North American session. After attempting a bullish breakout earlier on Tuesday during the London session, the flagship coin was rejected at the resistance level around $113k, thus retracing 1.1% to hit a range low of about $110,822.
The wider altcoin industry followed in tandem, thus increasing the daily net liquidation of leveraged positions at around $370 million, with the majority involving long traders.
Top Reasons Why Bitcoin Price Dropped Today
Downsized Biden’s Era Job Figures
Bitcoin and the wider crypto market reacted to the announcement that Biden’s Job figures were inflated. On Tuesday, the Bureau of Labor Statistics revised the job growth downward by 911k for the period between April 2024 and March 2025.
“Now it’s official: 2024 job gains were exaggerated by nearly 1M workers, and this is on top of an already reported 577K in downward revisions. This brings the Biden jobs overstatement to a staggering 1.5M,” Scott Bessent, Treasury Secretary noted.
Upcoming U.S. CPI Data
The downsizing of Biden-era jobs happened ahead of the upcoming CPI data for August. According to JPMorgan, August CPI is projected at 2.9% YoY, with core CPI steady at 3.1% YoY.
According to the bank, if the Core CPI is greater than 0.4%, the markets will record more losses. However, the bank noted that if the Core CPI comes in lower than 0.25%, the markets will rebound in anticipation of rate cuts.
Will the Fed Initiate a Rate Cut?
The odds of a 25 bps Fed rate cut reduced on Kalshi and Polymarket today, but remained elevated. According to JPMorgan, the Fed will initiate a 25 bps rate cut next week amid the CPI uncertainty.
Bessent stated that the Fed ought to cut its benchmark interest rate since President Donald Trump inherited a worse economy than reported. As such, Bessent stated that President Trump is justified in pushing the Fed to cut rates as high rates have been choking the economy.