2-7-2025 – Bitcoin dropped to approximately $106,000 on Tuesday as cryptocurrency traders reduced risk exposure ahead of pivotal US economic data releases.

The pullback follows a record-breaking June close above $106,000, with the US set to release a slew of labor market data on Thursday, including May job openings, June nonfarm payrolls and unemployment rate. Market participants are positioning defensively as these employment figures could influence Federal Reserve policy decisions and broader risk asset sentiment.

Bitcoin slid on Tuesday as weakness in U.S. tech stocks appeared to spill over into crypto markets, with the crypto asset falling about 1% over the past 24 hours. The decline represents typical pre-announcement volatility as institutional traders pare back leveraged positions before potentially market-moving economic releases.

Despite the recent pullback, Bitcoin remains near historic highs after surging from $75,000 to $106,000 in a month, with the Fear and Greed Index sitting at elevated levels that suggest continued bullish sentiment among retail investors.

Thursday’s employment data will likely determine whether Bitcoin can sustain its momentum above the psychologically important $106,000 level or faces deeper consolidation.