Recent U.S. employment data for August had a significant impact on the financial market, causing sharp price swings in assets like Bitcoin.
Labor Market Issues
According to the U.S. Bureau of Labor Statistics, only 22,000 payrolls were added in August, far below the forecast of 75,000. The unemployment rate rose to 4.3% from 4.2% the previous month. Layoffs climbed by 39% to 85,979, indicating a drop in labor demand.
Market Reaction to Employment Data
Following the employment report, Bitcoin surged to $113,000 but later retreated to around $110,736. Similar movements were observed with Ethereum and gold. Major stock indices S&P 500 and Nasdaq also showed declines of 0.8% and 0.6% respectively.
Federal Reserve Policy Prospects
Traders are increasingly anticipating an 88% chance of a Fed rate cut. Bank of America predicts two cuts this year. Grayscale's head of research, Zach Pandl, noted that the current economic data could positively impact cryptocurrencies if other risk assets remain stable.
Weak U.S. labor data amplifies recession fears, while expectations for Fed rate cuts could influence the asset market, including Bitcoin.
