Bitcoin Nears Breakout After US Job Data, 125 Bps Fed Rate Cuts This Year

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 towards a 50-bay interest rate cut by the Federal Reserve.

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, the 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.

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