US Jobs Miss Expectations, Bitcoin Targets $114K After Weak Labor Data

The U.S. added only 22,000 jobs in August, significantly missing expectations of 75K. Unemployment rose to 4.3%, marking the highest level since 2021 and sparking expectations of a 25 bps Fed rate cut on September 17.

This labor market softness, combined with previous weak job openings and ADP data, strengthens the case for monetary easing. Markets are now pricing in a nearly 100% chance of a rate cut next month, according to the CME FedWatch Tool.

Bitcoin responded positively, gaining over 2% to trade at $112,350. Analysts suggest the crypto could rally past $114,000 if current trends hold. Rekt Capital noted that a daily close above $113K would confirm a breakout continuation, while Ali Martinez emphasized key support at $92,600 based on MVRV Pricing Bands.

Bitcoin futures open interest rose over $81.4B, signaling bullish sentiment in derivatives markets. Ethereum, XRP, and other altcoins also saw price recovery.

With the U.S. dollar index falling and gold hitting $3,580, investors are turning to alternative assets amid concerns over U.S. economic health and ballooning federal debt.

This weak jobs report has broadened expectations for further Fed easing, possibly beyond the expected 25 bps. As risk appetite returns, Bitcoin and crypto markets are poised for continued volatility and potential upside.