The US non-farm payroll data shows that 142,000 jobs have been added in August, down from what the market was expecting. Following this data, which indicates a cooling Labor market, the market is now betting over a half-point rate cut at the upcoming Federal Reserve’s meeting later this month. Besides, Bitcoin noted recovery after the US job data, indicating the regaining confidence of the investors towards risk-bet assets.
US Job Data Boosts Sentiment
According to the latest nonfarm payroll report by the Labor Department, the US added 142,000 jobs in August, down from the market expectations of 161,000. On the other hand, the US unemployment rate came in at 4.2%, in line with the market expectations.
Both these data appear to have boosted the market sentiment, as evidenced by the recent surge in BTC price. Having said that, several market watchers are anticipating a potential rally in the crypto market, with soaring bets over a potential Fed rate cut of 0.5%.
Meanwhile, the latest data also showed that the July employment numbers have been revised down by 25,000 from 114,000 to 89,000. Simultaneously, June’s number was revised down by 61,000 from 179,000 to 118,000. Notably, the cooling non-farm payroll data with soaring unemployment likely boosted the traders’ sentiment, hinting at a possible dovish stance by the US Federal Reserve at their September meeting.
Bitcoin Eyes Breakout Amid Fed’s 100 bps Rate Cut Expectations
Following the release of the US job data, BTC price soared nearly 2% over the past hour to $56,877. Notably, the crypto has touched a low of $55,304.03 in the early US hours today, reflecting the cautious stance of the investors ahead of the key economic data.
The US 10-year dollar index fell 0.24% to 3.723 during writing, noting its lowest level since June 2023. On the other hand, the US Dollar index rose 0.03% to $101.110.
Meanwhile, bets over a 50 basis rate cut also increased following the US Job data. According to the CME FedWatch Tool data, there is a 47% odds of the US Federal Reserve announcing a 50 basis rate cut this month. However, the market lowered their bets over a Fed rate cut of 1.25% this year to 1% soon after the release.
Having said that, many market enthusiasts anticipate a Bitcoin breakout. Although September has historically proved to be a weaker month for the crypto, the market seems to be regaining confidence due to the favoring macroeconomic developments.
However, it’s worth noting that some experts still remain bearish on the crypto’s price. For instance, recently Peter Brandt predicted a BTC price crash to $46,000 if the bear momentum continues. Despite the risks, a recent Bitcoin price analysis showed that if the crypto could break the $60,000 resistance, it could propel a rally to $62,400 soon.
Additionally, New York Fed President John Williams has further cemented bets over a potential dovish stance by the Federal Reserve. In a recent interview, he said that it’s the correct time for the US Federal Reserve to start cutting the interest rates, given the easing inflation and a cooling labor market.
Rupam Roy
Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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