Weak U.S. Jobs Data Pushes Bitcoin Above $87,000
The weak labor market increases the odds of looser Fed policy, which pushed down yields and also supported stock futures and gold.
Key Takeaways
- The U.S. added 29,000 jobs in September, far below the expected 90,000.
- Unemployment rose to 4.2%, and July job growth was revised to a loss of 10,000 jobs.
- Bitcoin stayed just below $87,000 after the jobs report, while stock futures and the Nasdaq rose.
The U.S. labor market showed much more weakness in September than economists had expected. That may give the Federal Reserve more room to leave interest rates unchanged, even as inflation remains high. Bitcoin stayed just below $87,000 (€77,000) after the jobs report, and stock futures also moved higher.
Job Growth Misses Expectations By A Wide Margin
The U.S. added 29,000 jobs in September, far fewer than the expected 90,000. In August, revised figures showed 133,000 jobs were added, compared with the previously reported 162,000. Unemployment rose to 4.2%, up from 4.1% in August and also above the expected 4.1%.
The summer numbers were also revised lower. July job growth, which had previously been reported at 21,000, was revised to a loss of 10,000 jobs. That shows the U.S. labor market has been weaker over the past few months than was thought earlier.
Rate Expectations Shift
The market reacted immediately to the data. Yields on U.S. government bonds fell, with the 10-year yield down 7 basis points to 5.17% and the 2-year yield at 4.71%. Gold rose more than 1%, and the dollar weakened against other major currencies.
The tone was also positive in the stock market. The Nasdaq was up 1.2%, and the S&P 500 rose 1.2% after the report. That fits the broader move this week, as investors had already returned to the bond market after Fed rate expectations had climbed further. The earlier reaction to a Fed hike also showed how quickly crypto can move with changing rate expectations.
Why This Matters For Crypto
For crypto investors, jobs data like this matters mainly because it often moves along with U.S. rate expectations. A lower rate outlook usually makes risk assets like Bitcoin more attractive in the market, although this report by itself does not point to a lasting trend. On September 16, the Fed still raised its policy rate by 0.25 percentage point to 3.75% to 4.00%, the first rate hike since 2023, which shows policy is still tight even while inflation remains high.
