Bitcoin Eyes Non-Farm Payrolls Data, Will It Ease Fed Rate Hike Worries?

Bitcoin traders are now eyeing a pivotal economic release of the month. The report of nonfarm payrolls for August is expected to be released on Sept. by the U.S. Bureau of Labor Statistics. 4. The numbers will shape expectations for the Federal Reserve’s Sept. policy meeting. Oil prices have also been on the rise, adding to inflation concerns, and markets are also looking at recent hawkish comments from Fed Chair Kevin Warsh.

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Latest Jobs Report In Focus For Bitcoin, Crypto Market

Economists predict the U.S. economy will have created about 56,000 jobs in August. It would come after a surprise 23,000 jobs were lost in July. The rate of unemployment is expected to remain at 4.1%. Despite the forecasts being met, the level of employment would still be significantly lower than over the last few years.

Recent revisions have also left a less rosy view of the labor market. Combined, May and June had 103,000 fewer payrolls. The labor force participation rate stayed at 61.4% in July and average hourly earnings rose 3.2% from a year before.

New private sector jobs data also signaled weakness in jobs growth. U.S. businesses created just 38,000 jobs in August, ADP reported. The reading was lower than anticipated and the smallest monthly rise since January. Educational and health related occupations recorded the highest growth in employment, whereas manufacturing and professional occupations suffered declines.

The employment report may have an impact on what the Fed is looking for next ahead of the September 15-16 FOMC meeting. Economists believe a payroll gain of more than 100,000 and a stable or declining unemployment rate would indicate a strong labor market.

Any result near expectations is likely to keep investors from paying much attention to upcoming inflation data. If another weak reading or higher unemployment is registered, it could quell risks of a Fed rate hike despite inflation concerns. Such a dovish stance could indeed aid risk assets like Bitcoin and crypto as traders’ risk appetite tends to grow in conditions of economic policy easing.

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Analyst Projects BTC Price Surge To $82,700

As of now, Bitcoin could have finished its latest correction just ahead of the non-farm payrolls report, according to crypto analyst Michaël van de Poppe. In a post on X, he wrote, “Quite honestly, this looks like we’re going to see much more upside on the markets.” He added, “The correction is most likely over, meaning that I expect #Bitcoin to continue to run to $82,700.”

Bitcoin trading is inching toward $77,900, having bounced off of support around $76,200, according to the chart Poppe shared. It remind buyers time and again to defend that zone, and as prices keep forming lower highs. Resistance is also in play around $79,300. If BTC price can break above that area, it’ll have a chance at reaching the $82,700 target.

Poppe also proposed in another post that Bitcoin’s sideways trading might positively affect the entire crypto industry. He said, “At this stage, where #Bitcoin isn’t really moving, you’ll start to see more momentum shifts towards #Altcoins.” He added, “The longer Bitcoin remains stuck in this range, the longer the period is that altcoins will heavily outperform Bitcoin.”