The cryptocurrency gained momentum as traders weighed the potential impact of looser monetary policy on risk assets.
The August non-farm payrolls report showed only 22,000 new jobs created, far below the already low forecast of 75,000. Combined with disappointing initial jobless claims earlier in the week, the figures point to a cooling labor market that could push the Fed into action.
Markets are now pricing in a strong likelihood that policymakers will move ahead with rate cuts at the upcoming FOMC meeting. Such a shift would mark a decisive turn from inflation-fighting to growth support, a scenario that has historically favored Bitcoin and other risk assets.
Following the data release, Bitcoin jumped quickly to trade above $113,000, adding to weekly gains of more than 2%. The move coincided with renewed risk-on sentiment in equity markets, where the Nasdaq also extended its rally. Analysts note that Bitcoin’s correlation with tech stocks has remained intact, with crypto often following the lead of major equity benchmarks.
Despite the bullish reaction, analysts remain divided on Bitcoin’s short-term direction. EGRAG CRYPTO warned that a bearish crossover of the 9-day EMA below the 100-day EMA in Bitcoin dominance could foreshadow a pullback. Historically, such moves have coincided with altcoin strength at Bitcoin’s expense.
On the other hand, Crypto Rover emphasized the pattern of Bitcoin lagging behind the Nasdaq, arguing that the ongoing stock market surge leaves room for Bitcoin to extend gains in the weeks ahead.
If the Fed follows through with rate reductions, Bitcoin could benefit from increased liquidity, cheaper borrowing, and a weakening dollar. This environment tends to favor assets viewed as hedges or alternatives to traditional finance. However, traders caution that volatility will likely remain high, especially if macroeconomic conditions deteriorate further.
For now, Bitcoin is testing the $113,000 level as the market balances bullish momentum with caution over technical signals. Whether the Fed’s next move provides a lasting catalyst or only a short-term boost will be the key question heading into September’s policy meeting.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
The post Bitcoin Surges Past $113K as Weak U.S. Jobs Data Fuels Fed Rate Cut Bets appeared first on Coindoo.
Also read: Dogecoin is getting an ETF… and it’s not your typical crypto launch!
