Bitcoin (BTC) Approaches $57,000 as Markets Anticipate a 50 Basis Point Rate Cut in September

Markets anticipate a 50 basis point (bp) rate cut in September amid deteriorating US Job data. According to the US Non-farm Payrolls (NFP) data released on Friday, the US economy added 142,000 jobs in August, below the expected 164,000.

Markets now anticipate a 50 basis point (bp) rate cut in September following the latest US jobs report.

The report, also known as Non-farm Payrolls (NFP), showed that the US economy added 142,000 jobs in August, lower than the expected 164,000.

In response to this anticipation, Bitcoin rose over 2% in 30 minutes.

Bitcoin Price Today: BTC Nears $57,000

At the time of writing, Bitcoin (BTC) is trading at $56,821, approaching the $57,000 level.

The unemployment rate for August met expectations, coming in at 4.2%. This marks a decrease in unemployment from the 4.3% recorded in July.

“Big decline in “temporary layoffs” in August. That's a key reason the unemployment rate went back to 4.2%. It looks like July's big unemployment rate spike was mostly a fluke. But it's undeniable the labor market is cooling off a lot (and could easily get worse),” said Heather Long, Economic Columnist at the Washington Post.

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While the data shows that the US job market has cooled, it also highlights some clear warning signs. Despite this, a “soft landing” is still possible.

Following the report, risk-on assets like Bitcoin saw a brief surge, testing $57,000 as the greenback weakened on the back of the weak US jobs data.

According to the Fed’s CME Watchtool, markets are now pricing in a 50bp cut in September, with the probability jumping from 30.5% to 55%. The probability of a 25bp rate cut has decreased to 45%.

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