Weak U.S. jobs data has driven Bitcoin past the $113,000 mark. Investors are now expecting the Federal Reserve to move towards rate cuts.
Jobs Data Misses Expectations
The August non-farm payrolls report showed only 22,000 new jobs created, far below the already low forecast of 75,000. Combined with disappointing initial jobless claims earlier in the week, the figures point to a cooling labor market that could push the Fed into action.
Bitcoin Reacts to Fed Expectations
Following the data release, Bitcoin jumped quickly to trade above $113,000, adding to weekly gains of more than 2%. The move coincided with renewed risk-on sentiment in equity markets, where the Nasdaq also extended its rally. Analysts note that Bitcoin’s correlation with tech stocks has remained intact.
Conflicting Technical Signals
Despite the bullish reaction, analysts remain divided on Bitcoin’s short-term direction. EGRAG CRYPTO warned that a bearish crossover of the 9-day EMA below the 100-day EMA in Bitcoin dominance could foreshadow a pullback. Conversely, Crypto Rover emphasized that Bitcoin might have room to extend gains in the coming weeks amid the ongoing stock market surge.
Weak U.S. jobs data may create conditions for potential Fed rate cuts, which could lead to increased market liquidity. Bitcoin continues to test the $113,000 level, and its future dynamics will depend on macroeconomic conditions and regulatory decisions.
