Bitcoin News Today: July U.S. Payrolls Rise 73,000 vs 110,000 Forecast Spurring Fed Cut Speculation

The U.S. labor market showed a subdued expansion in July 2025, with nonfarm payrolls increasing by 73,000, falling short of the 100,000 forecast and marking a significant decline from the prior month's 14,000 figure. The unemployment rate edged higher to 4.2%, reflecting ongoing challenges in the labor market. The report, released by the U.S. Bureau of Labor Statistics under the supervision of Dr. William Wiatrowski, highlighted a cooling labor environment amid broader economic recovery efforts [1].

The data immediately influenced financial markets, triggering a selloff in equities as traders interpreted the weaker numbers as a potential signal for future Federal Reserve rate cuts [2]. The crypto market, which has historically responded to expectations of looser monetary policy, also saw mixed reactions. While the initial report briefly lifted optimism for rate reductions and pushed Bitcoin upward, the price failed to sustain momentum above the $116,000 level and eventually retreated amid heightened bearish pressure [3].

The underwhelming payroll figures have intensified speculation about the Fed's next move. Analysts had predicted a weaker report, with expectations hovering between 100,000 and 110,000 new jobs [5]. The actual data reinforced views that the labor market is moderating, potentially reducing the urgency for the Fed to maintain current high interest rates. This shift could support risk assets, including cryptocurrencies, as lower borrowing costs encourage capital flows into higher-risk sectors [4].

Historically, softer labor data has often led to gains in the crypto market, with Bitcoin and Ethereum typically seeing increased activity during such periods. Investors are closely monitoring whether the Fed will respond to the latest numbers with a dovish pivot, which could catalyze a broader risk-on trade [6]. However, the Fed's track record of prioritizing inflation control over employment data means any policy shift remains conditional.

The volatility observed in the crypto space following the release underscores the sector’s sensitivity to macroeconomic signals. As traders balance optimism over potential rate cuts with broader economic uncertainty, the performance of major cryptocurrencies remains closely tied to developments in U.S. monetary policy [7]. With the Fed preparing for its next meeting, market participants await further clues on the direction of interest rates and the potential implications for crypto prices.

Source:

[1] title: Jobs report July 2025: U.S. added just 73000 jobs, prior ... (https://www.cnbc.com/2025/08/01/jobs-report-july-2025.html)

[2] title: Tech Stocks Lead Selloff as Soft Labor Data Fuels Fed Cut ... (https://www.investing.com/analysis/tech-stocks-lead-selloff-as-soft-labor-data-fuels-fed-cut-bets-200664729)

[3] title: Bitcoin Rejects at $116K Despite US Jobs Win as Fed Rate ... (https://m.fastbull.com/news-detail/bitcoin-rejects-at-116k-despite-us-jobs-win-4338015_0)

[4] title: Nonfarm Payrolls rise by 73000 in July vs. 110000 forecast (https://www.fxstreet.com/news/nonfarm-payrolls-set-to-show-hiring-moderated-in-july-as-us-labor-market-cools-202508010500)

[5] title: Economy added just 73000 jobs in July: The key facts and ... (https://www.washingtonexaminer.com/policy/finance-and-economy/3488106/economy-jobs-july-report-figures/)

[6] title: Weakening US jobs market hits center of Fed rate policy ... (https://finance.yahoo.com/news/dissenting-fed-officials-tie-votes-120906335.html)

[7] title: Friday's Jobs Data Could Unleash A Dollar Short Squeeze ... (https://www.fidelity.com/news/article/us-economy/202507311625BENZINGAFULLNGTH46775334)