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Bitcoin Price Steady Amid Jobs Report and Fed Rate Cut Bets
#Bitcoin #Crypto #MarketUpdate #FedRateCut
In July, the U.S. added just 114,000 jobs, falling short of the expected 175,000 and down from June's revised 179,000. The unemployment rate rose to 4.3%, higher than June’s 4.1% and above the forecasted 4.1%, according to the Bureau of Labor Statistics.
Bitcoin's Reaction
Bitcoin Price Stability
Bitcoin's price showed little reaction to the jobs report, trading at $64,500, virtually unchanged from 24 hours ago.
Traditional Markets React
Market Movements
Traditional markets had a stronger reaction. The 10-year Treasury yield fell 15 basis points to 3.83%, and the two-year yield dropped 23 basis points to 3.93%, both reaching their lowest levels in over a year. Nasdaq futures fell 2.3%, and the S&P 500 decreased by 1.6%. The dollar declined by 0.6%, while gold rose 1.3% to a record high of $2,513 per ounce.
Wage and Hourly Data
Earnings and Hours
Average hourly earnings increased by 0.2% in July, below the expected 0.3%. Annually, earnings rose 3.6%, compared to the expected 3.7% and June's 3.8%. Average weekly hours were 34.2, missing the forecast of 34.3.
Fed Rate Cut Expectations
Increased Rate Cut Bets
With a 25 basis point Federal Reserve rate cut already priced in for September, traders are now betting on a 50 basis point cut, with a 70% chance according to CME FedWatch. Traders are also beginning to bet on a total of 125 basis points in cuts by year-end, up from 75 basis points expected just one day earlier.
