Employment Report in the US feeds expectations for rate cut, Bitcoin jumped to USD $ 113,000

By Hannah Pérez

Bitcoin jumped over the USD $ 113,000, but failed to keep the top after the US employment report corresponding to August, show indications of a labor market in contraction.

***

Weak employment report in the US.
Bitcoin also momentarily promoted on the USD $ 113,000.
The US economy added only 22,000 jobs in the month, below expectations.
Bitcoin failed to keep the height and retreated below USD $ 111,000.
The next meeting of the Fed on September 16-17 will be crucial for cryptocurrencies.

A weak employment report in the United States has fed the expectations of an upcoming monetary flexibility by the Federal Reserve, momentarily promoting the price of Bitcoin on USD $ 113,000.

The report, published Friday by the US Labor Statistics Office, showed that the US economy added only 22,000 jobs in August, well below the expectations of economists who predicted 75,000 new positions in the month. The unemployment rate rose to 4.3%, in line with projections, but marking an increase from 4.2% in July.

The US Department of Labor Department highlighted a marked deceleration in the growth of employment, with June reviews that even show a first contraction in the data since 2020.

This performance, combined with an increase in initial applications for unemployment benefits to a maximum of 11 weeks and a drop in the hiring of the private sector, has intensified concerns about possible deterioration of the labor market.

Expectations of a rate cut in September

On the other hand, the data has also strengthened the expectations that the Federal Reserve (FED) will cut interest rates in its meeting from September 16 to 17; a decision widely expected by cryptocurrency investors due to their potential to inject liquidity and boost the appetite of investors by risk assets such as Bitcoin.

Bank of Americain a change of perspective, now projects two feat cuts in 2025, in contrast to its previous forecast that there would be no changes this year, according to reports that circulated after the publication of employment figures.

Labor market in contraction

The August report adds to a series of cooling signals in the US labor market. In recent months, employment growth has averaged only 85,300 monthly jobs, a significantly lower figure than 153,300, 240,400 and 466,850 registered in the same periods of 2024, 2023 and 2022, respectively, as CNN details.

Factors such as aged workforce, reduced migratory flows and uncertainty generated by tariff policies have contributed to this deceleration, adds the news agency.

Despite the lack of a drastic increase in layoffs, continuous unemployment requests have reached maximum of almost 4 years, indicating difficulties for unemployed in finding work. Julio’s Jolts report had indicated that, for the first time in more than four years, there are fewer job vacancies than employment search engines, which underlines a labor market in contraction.

Bitcoin jumps to USD $ 113,000 before reversing

This labor panorama, which reflects an economic slowdown, promoted an immediate rebound in the price of Bitcoin (BTC).

The oldest and oldest digital currency quickly reacted to the report, rising from a local minimum of USD $ 109,400 to a maximum of USD $ 113,225 in the early hours (ET) on Friday, which represented an increase of almost 4% in the week. Bitcoin Then it was corrected below USD $ 111,000according to data from Coingcko at the time of editing.

Price graphics show indications of persistent volatility, since BTC failed to keep its height and retreated slightly, closing with a modest gain close to 1% in the last 24 hours. Bitcoin It remains 10% below its historical maximum of more than USD $ 124,000 reached in August.

Other important cryptocurrencies, such as Ether (ETH), also showed adverse movements, although with less impulse. ETH reached USD $ 4,467 before registering a 0.7% drop in the day. The total capitalization of the crypto market showed a slight increase of 0.8%, although the liquidations in the derivative market reached the USD $ 340 million in 24 hours, with BTC and ETH leading.

Implications for the future market

The weak job performance reinforces the narrative that the US economy could be entering a slower growth phase, which could justify a more accommodating monetary policy by the Fed. For cryptocurrency investors, this represents an opportunity, since rates cuts usually favor higher risk assets such as Bitcoin.

“The fourth quarter could bring new historical maximums for the main cryptocurrencies if the feat cuts are confirmed”, Said Paul Howard, senior director of Wycent, in conversation with The Block.

However, the volatility observed in the crypto market suggests that investors must remain attentive within the immediate period. Implicit volatility indices indicate possible moderate movements in Bitcoin and Etherwith greater expected fluctuations in Altcoins such as XRP and Sol. Meanwhile, Memecoins show a renewed interest despite the general correction.

The next federal reserve movement will be crucial to determine if Bitcoin You can recover your bullish impulse and approach your historical maximums again, or if economic uncertainty will continue to limit its performance. Analysts of Standard Chartered, Bernstein and Bitwise They have anticipated a emergence of BTC to the USD $ 200,000 for the closing of 2025.

Article written with the help of AI, edited by Diariobitcoin

Image of Unspash

WARNING: Diariobitcoin offers informative and educational content on various topics, including cryptocurrencies, AI, technology and regulations. We do not provide financial advice. Cryptactive investments are high risk and may not be adequate for all. Investigate, consult an expert and verify the applicable legislation before investing. I could lose all its capital.