Recent U.S. labor market data indicates weakness, potentially affecting Bitcoin prices. Meanwhile, anticipated changes in Fed policies may catalyze the cryptocurrency market.
Signals of Labor Market Weakness
According to the data, only 22,000 jobs were added in August, significantly below the expected 75,000. The unemployment rate rose to 4.3%, the highest since 2020. The number of job openings dipped below the number of unemployed for the first time, indicating that employers are scaling back hiring.
Current Bitcoin Technical Setup
Bitcoin's price is stabilizing just above 111,000 after a month-long correction. Indicators show narrowing volatility, with the upper band around 115,300 acting as resistance and the lower band around 107,600 as support. It will be crucial to see if Bitcoin can hold above 112,000–113,000 to test 115,000–116,000.
What to Watch in September
Key events in September include the Fed meeting on September 17, where a 0.25% rate cut is expected. If inflation continues to soften, markets might price in multiple rate cuts ahead. It's also important to monitor the Bitcoin price chart—daily close above 113,000 would signal a regaining bullish momentum.
The combination of weak labor data and potential Fed rate cuts creates a backdrop for possible Bitcoin price increases, but the situation remains unstable, requiring careful analysis of economic indicators.
