Bitcoin (BTC) Could Rise to $70K as the US Jobs Report Hints at a Fed Rate Cut in September

The latest US jobs report has sparked considerable debate. 114,000 jobs were added in July, but the unemployment rate rose to 4.3%.

The latest US jobs report has sparked considerable debate. While 114,000 jobs were added in July, the unemployment rate rose to 4.3%. This increase has led some to speculate that the Federal Reserve (Fed) could lower interest rates at its next meeting, which could have a positive impact on Bitcoin.

Jag Cooner, head of derivatives at Bitfinex, noted that while the job numbers show some economic strength, recession concerns persist due to high lending rates and rising unemployment. An unemployment rate of 4.3% could trigger the Sahm rule, which is a common indicator of recession, although its reliability may be diminished in the current post-panic labor market.

Economic uncertainty is further compounded by an inverted yield curve, another recession signal. Despite the increase in the number of layoffs, they remain historically low. The Federal Reserve is keeping interest rates high to fight persistent inflation, but there is growing speculation about a possible rate cut if economic signs soften.

If the unemployment data supports the Fed’s view that inflation is under control, a September rate cut could be expected, which would likely benefit Bitcoin. Kuner noted that August could see low market liquidity due to the summer season, with BTC expected to trade between $61,000 and $70,000.

Currently, market confidence is stable despite potential negative news, such as the Mt. Gox split and significant moves in the chain. Kuner stressed the need to watch for any statements from the Fed chairman regarding inflation and economic growth.

Powell hinted that a rate cut may be considered, and financial markets are awaiting that move. However, the Fed remains focused on the data, especially inflation trends, before making any decisions.

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