Bitcoin price rises after new jobs data from US

Bitcoin price surged today and exceeded $61,000 after strange information emerged about the US labor market.

What happened? Job growth from March 2023 to March 2024 was 818,000 less than expected, according to the latest revisions from the Bureau of Labor Statistics.

Why is the price of Bitcoin rising as a result?

It is noteworthy that Bitcoin rose today as a result of this data. Because on August 5, the market collapsed precisely as a result of weak data from the US labor market.

Now the price is going up. This could be explained as follows: A weaker economy means that the Federal Reserve (the US central bank) will likely have to cut interest rates sooner than expected and implement a more flexible monetary policy, which is good for the Bitcoin price.

Funny enough They already saw this coming at Goldman Sachs and Morgan Stanley.At Morgan Stanley, the revision was estimated at 600,000 fewer units, which would mean a decline of 50,000 units per month from March to March.

Goldman Sachs has come up with a similar story. The main reason Bitcoin is soaring is that the Fed may have to cut interest rates by 0.50% in September, rather than 0.25%.

All eyes on Paul

All eyes will be on Jerome Powell, the chairman of the US central bank, for a few days now.

He will take the stage on Friday at the Jackson Hole Symposium in the United States, an event organized by the US central bank, which attracts central bankers from around the world.

Powell will also undoubtedly be highlighting the US labor market on Friday. It is starting to show signs of weakness, as today’s data suggests.

In this regard, expectations will increase that the central bank will make several interest rate cuts during the remainder of 2024. This now seems to be actually necessary to contain the risk of recession.

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