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.
Source: TradingView; Bitcoin Daily Chart
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 133,000 and 125,000, respectively, to 14,000 and 19,000, respectively.
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 67.1% from 39.2% following the nonfarm payrolls release.
Source: CME FedWatch
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.
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Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand.
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