The US jobs data for August 2023 revealed a significant decrease, leading to expectations of rate cuts from the Fed. Bitcoin reacted to this news with a price increase.
Weak US Jobs Data
In August 2023, the number of new jobs in the US amounted to only 22K, far below the expected 75K. The unemployment rate rose to 4.3%, which was in line with expectations but up from 4.2% in the previous month.
Fed Rate Cut Expectations
According to the reports, the probability of a 25 basis point Fed rate cut in September increased to over 99%. The US Dollar Index fell below 97.75, and the yield on 10-year Treasury bonds dropped to 4.01%, indicating rising concerns over the health of the US economy.
Bitcoin Price Growth
Following the release of the jobs data, Bitcoin price rallied over 2%, reaching $112,350. Traders noted a 13% decrease in trading volume over the past 24 hours, yet interest in Bitcoin futures remains strong.
The drop in job data and rising unemployment in the US confirm a cooling labor market. At the same time, Bitcoin's reaction shows optimism among analysts regarding future prices.
