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Key Takeaways:
- Bitcoin rebounded from $114,100, nearing $116K after weak U.S. job growth.
- Rate cut odds for September surged to 82.1% following labor market data.
- Trump renews pressure on the Fed as economic signals turn mixed.
Bitcoin (BTC) is eyeing a return to the key $116,000 level after rebounding from an intraday low of $114,100, according to TradingView data. This price surge comes after July’s U.S. nonfarm payrolls report showed only 73,000 jobs added—well below the expected 147,000. Previous months were also revised sharply downward, with May and June numbers falling to 19,000 and 14,000, respectively.
While the unemployment rate held steady at 4.2%, the dramatic miss in job growth has raised red flags about the health of the U.S. labor market.
Rate Cut Odds Surge After Labor Market Miss
Traders are now betting heavily on a Federal Reserve rate cut in September. The CME FedWatch tool shows that odds of a cut have soared to 82.1%, up from just 39.2% the day prior. This shift comes despite hot PCE inflation data earlier in the week, which had temporarily lowered cut expectations.
Rate cuts are typically bullish for risk assets like Bitcoin, as they increase liquidity and reduce the appeal of traditional interest-bearing assets.
Political Pressure Builds on the Fed
Former President Donald Trump added fuel to the speculation, calling Fed Chair Jerome Powell a “disaster” and again urging an immediate rate cut via Truth Social. Trump emphasized that tariffs are generating revenue but acknowledged their inflationary effect—something Powell himself warned about during the latest FOMC speech.
Also Read: Is Bitcoin Headed Lower? Traders Face $644M Losses After Trump’s Tariff Announcement
This combination of slowing job growth and rising inflation presents a policy dilemma for the Fed, but the weakening labor data may leave them little choice.
BTC Bulls Eye Breakout
With the Fed now seen as likely to pivot, Bitcoin bulls may get the macro catalyst they’ve been waiting for. A confirmed breakout above $116,000 could signal renewed bullish momentum, especially if monetary policy eases in September.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
