The Bitcoin price has regained momentum as the latest US jobs report revealed the weakening labor market. As the US economy unexpectedly lost 23,000 jobs in July, the expectations for the Federal Reserve’s potential interest rate cuts have strengthened. With the softer employment data boosting investor confidence for risk assets, Bitcoin and other cryptocurrencies are building strong bullish sentiment.
The latest data from the US Bureau of Labor Statistics revealed a weaker-than-expected jobs report. The economy reportedly lost about 23,000 nonfarm payroll jobs in July, while the market expected about 80,000 new jobs. Thus, the report highlights a slowdown in hiring, with July becoming one of the weakest months for job growth in recent years.
In addition to the weak July data, payroll figures for May and June were revised downward. As per the report, the June payroll growth was revised down from 57,000 to 20,000 jobs. At the same time, May’s payroll growth was also lowered, totally erasing 103,000 jobs from earlier estimates. This indicates that the labor market has been weakening for the past few months.
Even though the unemployment rate eased to 4.1% from the previous 4.2%, the overall job report has sparked a bullish sentiment in the crypto market. The softer macroeconomic data pushed the Bitcoin price higher, as investors return to risk assets. As of press time, the Bitcoin price is marked at $65,087, with a marginal 24-hour uptick of 1.15%. The coin has also seen notable surges of 2.5% and 5.5% over the past week and month, respectively.
The broader crypto market has also seen a notable positive trend, with the total cap surging to $2.21 trillion, up 1.13%. Besides BTC, altcoins like Ethereum, XRP, Solana, and BNB have also posted marginal gains in response to the weaker US jobs report.
It is worth noting that the weaker-than-expected July jobs report has sparked expectations of the Federal Reserve’s rate cuts in September. As the labor report has revealed a weakening market, with the loss of 23,000 jobs, the Fed is expected to lower interest rates.
According to Polymarket, the odds of rate hikes in September have dropped to 35%, down from the recent 77%. Now, the market has started speculating about a possible interest rate cut rather than a hike. This is a positive development for the Bitcoin price and the overall crypto market.
(adsbygoogle = window.adsbygoogle || []).push({});However, the estimations come in contrast to the previous day’s market expectations. This is mainly because of the US ISM Manufacturing PMI and Services PMI reports. As CoinEdition reported, both reports revealed a stronger-than-expected US economy, which boosted speculation about the Federal Reserve’s possible interest rate hikes.
