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U.S. Jobs Report: Nonfarm Payrolls Fall by 23K, Bitcoin Rises
- Cryptocurrency
Crystal Kim- 3 minutes read
The U.S. jobs report has come in softer than expectations, with the U.S. economy losing 23,000 jobs last month. Bitcoin has climbed on the back of the macro data, which signals that the labor market is still showing signs of weakness.
U.S. Jobs Report Comes In Soft, Bitcoin Rises Above $65,000
Bureau of Labor Statistics data shows that the nonfarm payrolls fell by 23,000 last month, below expectations of the addition of up to 80,000 jobs. This marks the third largest monthly job loss since 2020.
This also marks a significant decrease from June, when the U.S. added 57,000 jobs. It is worth noting that the June job number was also revised down by 37,000 jobs, signaling a weakness in the labor market.
Meanwhile, the July jobs report showed that the unemployment rate fell to 4.1%, below expectations of 4.2%, as recorded in June. Bitcoin has climbed on the back of this report, which makes a case for the Fed to reconsider a potential rate hike.
The Bitcoin price is currently trading at around $65,200, up almost 2% today, according to TradingView data. The leading crypto fell earlier this week amid fears that the Fed could hike rates as soon as September.
As CoinGape reported, Fed President Neel Kashkari called for higher interest rates to fight rising inflation. However, the latest jobs report could put the Fed in a dilemma, as it also has to address potential weakness in the labor market by at least holding rates steady.
Odds Of A Rate Hike Fall
The odds of a Fed rate hike this year have fallen following the release of the July jobs report. Data from the top crypto prediction market platform Polymarket shows a 56% chance that the Fed will hike rates this year, down from a recent high of 77%.
The odds that the Fed will keep rates unchanged at the September FOMC meeting have also climbed. Prediction markets data shows that there is a 66% chance that rates will remain unchanged after the meeting, up from around 50% as of yesterday.
The CPI and PPI inflation data drop next week, which could also have a huge impact on the September Fed decision. Inflation continues to trend way above the Fed’s 2% target as the U.S.-Iran war drives energy prices higher.
