Bitcoin, Ethereum, and XRP are recovering after recent market weakness, as traders price in three interest rate cuts from the Federal Reserve this year. The rebound comes on the back of soft U.S. jobs data, which has fueled expectations of monetary easing.
Over the past 24 hours, the crypto market recorded liquidations totaling $270 million, with $36 million in short positions wiped out in just one hour. According to Coinglass, more than 94,000 traders were liquidated, including a single BTC-USDT order worth $2.25 million on OKX.
Bitcoin, Ethereum, and XRP each posted sharp rebounds, with data showing nearly $20 million in BTC shorts, $15 million in ETH, and $600,000 in XRP liquidated in just four hours. Analysts noted that Bitcoin bounced from strong bid depth, with traders rotating out of short positions and hedges following the latest labor market reports.
The CME FedWatch Tool indicates a 99% probability of a 25-basis point rate cut at the September 17 Fed meeting, with markets expecting a total of 75 basis points in cuts across 2025. Expectations for a December rate cut have also jumped, climbing above 47%.
Markets are now waiting for the August nonfarm payrolls report and unemployment rate data. Economists forecast payroll growth of 75,000 jobs and unemployment rising to 4.3% from 4.2%. Weaker-than-expected numbers could drive further upside in crypto markets.
At the time of writing, Bitcoin was trading at $112,800, up 2% from its daily low of $109,347. Ethereum climbed above $4,400, recovering from $4,268, while XRP advanced over 2% to $2.84 after bouncing from a low of $2.78. Trading volumes in BTC and ETH have also surged, signaling renewed interest among retail and institutional investors. 
The rebound highlights growing market confidence as traders bet that Fed rate cuts will provide a supportive backdrop for both digital assets and global risk markets.
