Bitcoin advanced on Friday after the U.S. jobs report showed sharply slower hiring, reinforcing expectations for a Federal Reserve rate cut this month. The world’s largest cryptocurrency gained 2.3% to $113,220 by late morning in New York, extending its weekly rise to over 4%.
The Labor Department reported 22,000 jobs added in August, well below forecasts of 75,000. The unemployment rate rose to 4.3%, its highest since late 2021. July’s hiring was revised slightly higher to 79,000, while June was adjusted to a net loss of 13,000.
Markets reacted swiftly:
- Bitcoin turned positive immediately after the release.
- Gold surged 1% to a record $3,594 an ounce.
- Treasury yields and the U.S. Dollar Index fell.
The weak payrolls data aligned with other soft labor indicators this week, including declining job openings, higher jobless claims, and contracting ISM employment measures.
Fed Rate Cut Bets Fully Priced In
Futures traders now fully price in a 25 basis point cut at the Fed’s September 16–17 meeting, with a 12% chance of a larger 50 basis point move, according to CME Group’s FedWatch tool.
Several Fed officials have recently emphasized that cooling labor conditions will make the central bank more open to easing. Chair Jerome Powell signaled in August that policymakers were prepared to prioritize employment stability if economic risks deepened.
Lower rates typically support speculative assets such as cryptocurrencies by boosting liquidity and encouraging risk-taking.
Altcoins Track Higher with Weekly Gains
Bitcoin’s rebound helped lift the broader crypto market, though altcoins posted smaller gains.
- Ether rose 1.3% to $4,434.77 and was up nearly 1% for the week.
- Solana added 1.2% daily, climbing 4.2% for the week.
- Cardano advanced 3.5%, also 3.5% higher week-to-date.
- Dogecoin increased 2.2%, while $TRUMP token added 1.4%.
Despite the uptick, most tokens remained rangebound after steep August declines. Regulatory signals in Washington and renewed corporate interest in Bitcoin have provided limited support, but traders remain focused on the Fed’s policy decision later this month.
The combination of weaker labor data, falling yields, and expectations of looser monetary policy has reignited momentum in crypto, though market sentiment remains cautious heading into the September Fed meeting.