Bitcoin Stays Quiet After Weak US Jobs Data Changes Fed Outlook

Bitcoin barely moved on Friday despite new data showing a surprising decline in US non farm payrolls. The price ticked up from $64,500 to a local high of $65,300 shortly after the report, marking a modest gain of 0.7 percent. While the market reacted calmly, the underlying economic data tells a story of a cooling labor market.

The Bureau of Labor Statistics reported an unexpected drop of 23,000 jobs in July, which fell far short of the predicted growth of 83,000. Revisions to May and June data also revealed that job creation was 103,000 lower than previously estimated. This slowdown has shifted expectations for Federal Reserve policy, with traders now putting the chance of a September rate hike at 44 percent.

Wage growth has also slowed to 3.2 percent, the weakest pace since May 2021. Experts suggest that the focus is shifting from inflation risks toward potential weaknesses in the labor market. While crypto markets previously saw large price drops during periods of hawkish sentiment, this latest report has not triggered the same kind of volatility.

Traders will be watching the next Federal Open Market Committee meeting closely to see if the central bank changes its stance. With job numbers softening, the pressure on the Fed to hold rates steady or pivot may increase in the coming weeks.