Bitcoin closes to $57,000 amid declining US jobs data

Markets expect a 50 basis point (bp) rate cut in September as US jobs data continues to decline. According to US non-farm payrolls (NFP) data released on Friday, the US economy added 142,000 jobs in August, below expectations of 164,000.

Due to this enthusiasm, Bitcoin rose more than 2% in 30 minutes.

Bitcoin is close to $57,000

At the time of writing, Bitcoin (BTC) is trading at $56,821, quickly moving towards the $57,000 mark.

August's unemployment rate came in at 4.2 percent. It means unemployment is back on the decline after 4.3% in July.

Big drop in “temporary layoffs” in August. It's a key factor in the unemployment rate returning to 4.2 percent. July's big increase in the unemployment rate appears largely accidental. But the job market is undeniably cooling (and could easily get worse),” said Heather Long, economic columnist at the Washington Post.

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While these data show that the US labor market has cooled, there are also clear warning signs. However, a “soft landing” remains possible. Immediately after the report, risk assets such as bitcoin briefly jumped, testing $57,000 in response to the greenback weakening on weak US jobs data.

Based on the Fed's CME Watchtool, markets are down 50bp in September, likely due to a jump from 30.5% to 55%. Meanwhile, the probability of a 25bp rate cut has dropped to 45%.