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Highlights
- The BTC price has bounced from an intraday low of $114,142, briefly touching $115,800.
- This came on the back of the July job data, which showed that the U.S. added only 73,000 jobs.
- Traders are again pricing in a September rate cut, with a 67.1% chance of a 25 bps cut.
The BTC price has pared some of its losses from earlier in the day, as it looks to reclaim the psychological $116,000 level. This comes on the back of weak U.S. job data, which suggests that the Fed might have no choice but to cut rates in September.
BTC Price Jumps As U.S. Adds Only 73,000 Jobs In July
TradingView data shows that the flagship crypto had spiked from its intraday low of around $114,100. Bitcoin is now looking to break above $116,000, as part of its recovery from its intraday low.
This BTC price recovery follows the release of weak U.S. job data. U.S. Bureau of Labor data shows that nonfarm payrolls rose to 73,000 in July, way below expectations of 147,000. Meanwhile, the June and May data were revised from 144,000 and 147,000, respectively, to 19,000 and 14,000.
Although the unemployment rate came in at 4.2%, in line with expectations, the nonfarm payrolls data, including the revisions, indicate that the labor market is weakening. As a result, traders are now pricing a Fed rate cut in September, which is a positive for the BTC price.
CoinGape had reported earlier that the September odds for a rate cut had dropped from 63.7% to 39.2% yesterday as the PCE inflation data came in hot. However, the odds have now spiked to 82.1% from 39.2% following the nonfarm payrolls release.
A potential September rate cut would be the first cut that the Fed will make since the start of the year, having held rates steady for five straight FOMC meetings. A cut is bullish for the market since it could inject liquidity into the market.
Meanwhile, it would also provide a much-needed bullish catalyst at a time when the Trump tariffs threaten to crash the BTC price and other crypto assets. These crypto prices had fallen to new lows yesterday after the U.S. president signed an executive order on the reciprocal tariffs.
Trump Also Calls For A Rate Cut Again
Following the release of the nonfarm payrolls data, Trump again called for a rate cut. In a Truth Social post, he described the Fed Chair Jerome Powell as a disaster and asked him to drop the rate. He added that the good news is that tariffs are bringing in billions of dollars into the U.S.
Powell and the FOMC look to be at a crossroads at the moment, with inflation on the rise and the labor market weakening. The Fed Chair had said during his FOMC speech that the Trump tariff inflation has just begun, suggesting that inflation could rise higher in the coming months.
However, the labor market, which the Fed has consistently admitted is strong, doesn’t look so strong based on the recent data. As such, the FOMC might have no choice but to lower rates at the next meeting as market participants expect.
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