US employment shakes up markets: Bitcoin climb, Wall Street is back

US labor market reports have caused shock waves in the financial field, encouraging risk assets such as Bitcoin to know high price variations. With disappointing employment data for August, foreseeable alarms have broken out concerning an imminent recession, which could stimulate a new appetite for risky assets.

The weakness of the labor market arouses fears of recession

BTC, as well as other cryptographic assets, recorded volatile price movements on Friday while the reports of the American work statistics office revealed that only 22,000 non -agricultural jobs were added to the economy in Augustor around 70 % below the 75,000 forecast.

Data also shows that the unemployment rate increased to 4.3 % in August, compared to 4.2 % the previous month. Another disturbing data point from Bloomberg highlights this drop in labor force in the United States. According to the international news agency, US companies have only announced 1,494 new jobs Last month, the lowest total for 16 years.

The layoffs increased by 39 % to 85,979 while the unemployed Americans were in number higher than the available jobs. The low employment reports suggest that companies probably delay hiring, which typically signals a low demand and a slowdown in activity.

In particular, the average over three months shows a sharp decline, which aligns with the current tendency to cool the labor market. Experts warn that this continuous trend can affect consumer spending and overall growth, thus feeding the risk of recession.

Following the publication of the work report, Bitcoin climbed $ 113,000 before dropped to around $ 110,736 at the time of the editorial staff. Ethereum also dropped to $ 4,300, while gold reached a record at $ 3,580 during the same period.

In addition, the S&P 500 and Nasdaq stock market indices fell 0.8 % and 0.6 % respectively. The Dow Jones Industrial Average fell 363 points after touching a new summit earlier Friday.

Low employment data and betting on a drop in Fed rates reinforce the prospects for bitcoin

Zach Pandl, research manager at Grayscale, believes that the last economic report could be positive for cryptocurrencies such as Bitcoin – provided that actions and other risky assets hold. He also noted that reports such as work data could probably accentuate the risk of a recession Fueled by a decrease in numbers of immigration.

We know that the shares fall in the event of recession, but they do not necessarily fall in a labor market that is limited by a drop in immigration. We know that the decrease in immigration has played an important role, and that the slowdown in the labor market does not only concern companies that slow down their hires or demand for labor.

Zach Pandl

The president of the Fed, Jerome Powell, has also recognized the sharp drop in immigration in recent months. During a speech to Jackson Hole, he explained that the job market had reached a point where the demand and supply of workers weaken, a sign of additional negative pressures for the economy.

With the slowdown in economic data, traders are increasingly confident about a possible drop in rates. According to CME Fedwatch, the markets attribute a probability of 89 % of a rate drop of 0.25 point and a probability of 11 % of a larger drop of 0.5 points.

Bank of America also revised its previous forecasts, predicting that the Fed would drop interest rates twice this year. Although the recent employment report scores a key point in the American economy, it also feeds a solid discourse in favor of risky assets such as Bitcoin.