Bitcoin is stomping on the water as traders wait for key data points that could affect the Federal Reserve interest rate decisions later this month as they wait for figures in the US labor market on Friday.
The crypto was hardly changed on a 24-hour basis, and was back-lossed early in the trading session that day. Bitcoin is hovering nearly $111,100, according to Coingecko data.
Goldman Sachs expects a weaker August non-farm salary report, predicting just 60,000 jobs versus an estimated 75,000, with unemployment rate rising to 4.3%, to its highest level since 2021. Report by thestreet.
Entering the NFP tomorrow, when MEXC Research chief analyst Shawn Young is holding September 17th, the market position will be “soft but stable” with a “stable” print supporting a 25 base point cut. Decryption.
“Unless you see any unexpected strong benefits in your work or wages, the general expectation is that the Fed continues towards easing,” he said.
When asked if the market was already priced on Friday's labor data, Young agreed to have something “large.”
“What's not very certain is the trajectory since September,” he said. “Traders are cautiously looking at wage or unemployment hits that could change expectations with the pace and depth of cuts going forward.”
Bitcoin has been continuing its stocks this year, and macroeconomic data is affecting future expectations of asset prices as participants try to preempt the weakness of US economic growth.
The Fed is currently facing a difficult position in achieving both price stability and maximum employment dual duties, with core inflation still at 3.1%.
According to the August Challenger Report On Thursday, U.S. employers reported 85,979 job cuts in August, up 39% from July's 62,075 figure, marking their highest month since 2020.
Friday's “Goldilocks” report includes moderate employment improvements, stable unemployment and wages, which will benefit both stocks and crypto, which “need to be fueled by risk,” Young said.
However, the downside shock can cause a “first risk-off move against the fear of growth,” which then recovers as market prices at the rate of FRED mitigation.
“On the other hand, the shock of a strong rise will increase yields, strengthen the dollar, and put pressure on risky assets in the short term,” he said.
