Bitcoin price rose above $61K today after strange news about the US labor market emerged.
What happened? According to the Bureau of Labor Statistics’ latest revisions, job growth from March 2023 to March 2024 was 818,000 lower than expected.
Why is the Bitcoin price rising as a result?
Bitcoin’s surge today is significant as a result of that data. Because on August 5, the market crashed precisely as a result of weak data from the US labor market.
Now the price is going up. The explanation for this could be as follows: a weak economy means that the Federal Reserve (the US central bank) has to cut interest rates sooner than expected and implement a more flexible monetary policy and that is good for the price of Bitcoin.
Enough fun They already saw it coming at Goldman Sachs and Morgan Stanley. At Morgan Stanley, the revision was estimated at 600,000 units lower, which would mean a decline of 50,000 units month-on-month.
Goldman Sachs came up with a similar story. The main reason for the rise in Bitcoin prices is that the Federal Reserve is expected to cut interest rates by 0.50% in September instead of 0.25%.
All eyes on Powell
For now, eyes will turn to Federal Reserve Chairman Jerome Powell for a few days.
He will take the stage on Friday during the Jackson Hole Symposium in the US; An event organized by the US Federal Reserve that attracts central bankers from around the world.
Powell will undoubtedly shine a light on the US labor market next Friday. It is starting to show signs of weakness as today’s data also shows.
As such, expectations for its central bank to make several interest rate cuts through the remainder of 2024 will only increase. It now really seems necessary to contain the risk of recession.
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