The US job market experienced slower growth in August than anticipated, leading to a positive response from Bitcoin prices. The unemployment rate in the US decreased to 4.2% in August from 4.3% in July, which was a multi-year high. The release of the US jobs report on Friday revealed that over 160,000 jobs remained unfilled, surprising the markets. This data could offer insight into the actions the US Federal Reserve may take in the upcoming weeks, causing Bitcoin to initially rise to $57,000 before dropping back down to $55,000.
Bitcoin price first rose, then fell
The US Department of Labor reported that local employers added 142,000 new jobs in August, lower than expected. When looking at the job numbers from July and June, the three-month average came out to 86,000, significantly below the 202,000 average from the previous year before the summer of 2024. Despite the lower job growth, the decline in unemployment was a positive sign for the US economy. The unemployment rate dropped slightly from 4.3% in July to 4.2% in August, aligning with most expert predictions.
The data suggests that the US Federal Reserve may decide to cut interest rates later in September, with Chairman Jerome Powell hinting at this possibility. Speculations indicate a potential 25 basis points cut. Bitcoin’s price reacted swiftly to the US government’s report, as it has become increasingly sensitive to economic indicators from the largest global economy. The price surged from $55,500 to $57,000 but failed to sustain that level, ultimately dropping back to $55,000.
What’s the latest on the BTC price?
Bitcoin’s price briefly increased ahead of the Wall Street opening on September 6 following disappointing US jobs data. However, the price retreated back to $54,919 on Bitstamp after failing to maintain the $57,000 target. Concerns about the labor force arose as nonfarm payrolls for August fell short of expectations.
A senior Fed official advocated for a reduction in interest rates, suggesting a decision would be made on September 18. New York Fed President John Williams stated that the current monetary policy had been successful in balancing the economy and curbing inflation. Market indicators showed equal chances of a 25% and 50% rate cut following the data release. The US dollar strengthened at the start of trading.
Daan Crypto commented on the Bitcoin price in relation to the US dollar index (DXY), noting the DXY’s weakness. To stay informed on the latest news, follow our updates on Twitter, Facebook, and Instagram. Join our Telegram and YouTube channels for more insights.
