Bitcoin Holds Steady Following US Jobs Report: Where Next?

US Jobs Report for July

• US economy added 187,000 jobs in July, below the expected gain of 200,000.
• Unemployment rate unexpectedly declined to 3.5% from 3.6% in June.
• Average hourly earnings growth was also stronger than expected, rising 0.4% MoM in July against expectations for an increase of 0.3%.

Market Reaction

The lack of reaction in the bitcoin price and broader financial markets to the report was attributed to the fact that there was “something for everyone” in the data; heat is coming out of the jobs markets but still super low (by historic comparison) unemployment rate and wage growth that remains well above the Fed’s 2.0% inflation target show that labor market remains too hot for Fed’s liking.

Expectations for Fed Tightening

Investors seem to have taken view that latest jobs report doesn’t change narrative much regarding expectations for Fed tightening; CME’s Fed Watch Tool implies an 86% chance that central bank leaves rates unchanged at next meeting & a roughly 75% chance that rates are left at current or lower levels for rest of year & a roughly 60% chance that Fed will have begun cutting interest rates by next March.

Bitcoin Price Holding Above $29K

The Bitcoin (BTC) price is holding within recent ranges to north of $29,000 level in wake of latest mixed US jobs report; no major reaction seen as markets think this confirms expectation that Fed’s tightening cycle is now done before gradual cuts begin 2024.


The US job report revealed mixed results with job gains lower than expected but unemployment rate decreasing more than expected and strong wage growth numbers suggesting labour market is still too hot for Federal Reserve’s liking. Markets believe this confirms expectation that Feds tightening cycle is now done before gradual cuts start in 2024 and Bitcoin prices hold steady above $29,000 following report release with no major reaction seen from investors yet.

Bitcoin Holds Steady Following US Jobs Report: Where Next?
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