Bitcoin Gains as U.S. Nonfarm Payrolls Comes In Way Below Expectations

Bitcoin has climbed above the psychological $86,000 level on the day, amid the release of U.S. jobs data. Nonfarm payrolls came in at 29,000, well below expectations, further crushing expectations of an October Fed rate hike, which is a positive for BTC.

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Bitcoin Climbs Above $86,000 Amid Weak U.S. Jobs Report

The BTC price is trading at around $86,700, up over 2% on the day, according to TradingView data. The flagship crypto’s rebound comes amid a weak U.S. jobs report, which showed the U.S. added fewer jobs than expected last month.

According to the U.S. Bureau of Labor Statistics, nonfarm payrolls increased by 29,000 last month, below expectations of 89,000 and down from the 162,000 jobs the U.S. added in August. Meanwhile, the unemployment rate rose to 4.2% from 4.1% in August, a 3-month high. This represents a positive for Bitcoin, as a weak jobs report makes a case for the Fed to hold rates steady.

Notably, the weak jobs report also comes on the back of soft PCE inflation data earlier this week, which contributed to the crash in the odds of an October Fed rate hike. New York Fed President John Williams also signaled no urgency to hike rates again, which caused the market to reduce expectations for an October hike.

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October Rate Hike Odds Fall To New Low

The odds of an October Fed rate hike have fallen to a new low following the release of the U.S. jobs report. Data from the top crypto prediction market platform Polymarket shows only a 17% chance of a 25 bps rate increase this month, down from a high of 70%.

Meanwhile, there is an 84% chance the Fed will hold rates steady at the October FOMC meeting, which could give Bitcoin and the broader crypto market a chance to rally. Another rate hike this year also remains uncertain, as Goldman Sachs said that the Fed may consider additional hikes unnecessary.