Bitcoin experienced a 2 percent decline following a weak US jobs report that indicated slower economic growth than expected.
Despite signs hinting at a Fed easing cycle, the Bitcoin price showed short-term bearish volatility with a high near $113,384 before cooling.
Investors reacted swiftly after the jobs numbers fell well below expectations while unemployment rose to 4.3 percent.
This data increased speculation that the Federal Reserve may lower interest rates sooner, supporting risk assets like Bitcoin in the near term.
What Did The Latest US Jobs Report Reveal
The recent report showed an increase of just 22,000 jobs, significantly lower than the anticipated 76,500, and unemployment rose to a four-year high of 4.3 percent.
Youth unemployment also climbed above 10 percent, echoing struggles for younger Americans in the labor market. These figures pointed to a slowing economy and labor market weakness.
The data suggests a cooling in hiring momentum since late 2021, increasing pressure on the Fed to reconsider its tightening stance soon. However, inflation and wage growth trends will also influence the Fed's timing.
Did you know?
Bitcoin’s supply held by corporate treasuries hit a record 840,000 BTC in 2025 while institutional buying slowed sharply.
How Is The Fed Responding To Economic Signals?
The Federal Reserve traditionally weighs multiple factors, including inflation, consumer spending, and wage trends, when deciding policy.
Given the weaker labor market data, markets now price in a higher probability of an interest rate cut either at the upcoming September meeting or soon after.
Despite economic softness, the Fed may proceed cautiously if inflation remains above target. The rise in unemployment is pushing for easing sooner rather than later, adding uncertainty around exact timing.
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Why Did Bitcoin Fall Despite Positive Fed Outlook?
Bitcoin initially surged to a nine-day high after the report but fell below the daily open as short-term selling pressure increased.
Large investors known as whales have reduced reserves by over 100,000 BTC in the last month, signaling risk aversion.
Institutional accumulation has slowed sharply despite overall record corporate holdings in Bitcoin.
This cautious investor behavior briefly weighed on price, counterbalancing optimism from a potential Fed rate cut.
What Does Bitcoin’s Technical Setup Indicate
Technical charts reveal a Head and Shoulders pattern forming on the 8-hour timeframe, a classic bearish signal. After failing to reclaim key support near $113,000, sellers have maintained control in recent days.
If the neckline at around $108,000 breaks, Bitcoin could target lower support zones near $95,000.
However, higher lows since August affirm that some buying interest is defending dips, suggesting a mixed but watchful market.
What Is The Market Forecast For Bitcoin This Weekend
Analysts generally see Bitcoin near-term targets between $105,000 and $108,000, with a risk of dropping to $97,000 if selling pressure escalates.
Long-term advisors remain bullish, noting Bitcoin’s growing role amid changing monetary dynamics.
The market awaits the Fed decision, with investors ready for sharp moves depending on policy guidance.
Bitcoin’s trajectory this weekend could set the tone for coming months as liquidity and technical factors interplay.
Bitcoin remains a key asset to watch as global monetary policies shift in response to evolving macroeconomic trends and investor sentiment continues to adapt.
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