Bitcoin News Today: Weak Jobs Data Intensifies Fed's Delicate Easing Tightrope

The U.S. Treasury and Federal Reserve are under increasing pressure to respond to a worsening labor market as recent employment data fuels expectations for aggressive monetary easing. The August nonfarm payrolls report, released on Friday, revealed a mere 22,000 new jobs added, far below the 75,000 forecast by economists. This marked a dramatic slowdown in job creation, with the unemployment rate rising to 4.3% from 4.2% in July, primarily due to a 436,000 increase in the labor force [1]. The data also included downward revisions to previous months’ figures, with June’s numbers showing a net loss of 13,000 jobs [1].

The weak labor market performance has intensified market speculation about an imminent Federal Reserve rate cut. According to the CME FedWatch tool, the probability of a 25-basis-point rate cut at the Fed’s September meeting has risen to near certainty, while the likelihood of a 50-basis-point cut is now at 12% [1]. This follows calls for significant monetary stimulus, including a suggestion by U.S. Treasury Secretary Scott Bessent for a 100-basis-point cut this year [2].

Despite the rising expectations of rate cuts, financial markets have not reacted with unbridled optimism. Major U.S. stock indices closed the week with modest gains, though the Nasdaq Composite saw limited support amid a broader selloff in AI-related stocks [2]. Bitcoin and Ethereum prices also failed to capitalize on the positive sentiment. Bitcoin briefly surged to over $113,300 in response to the rate cut hopes but quickly retreated, unable to sustain gains [3]. The cryptocurrency’s technical outlook has grown increasingly bearish, with prices breaking below key resistance levels and the Ichimoku cloud, reinforcing concerns of a deeper correction [4].

Ethereum’s performance has been even more troubling. The weekly report indicated over $780 million in net outflows from Ethereum-related spot ETFs, with BlackRock’s IBIT alone experiencing a $63.2 million outflow on the day of the jobs report [2]. Despite continued accumulation by institutional investors, the broader market weakness has dampened price resilience [2]. Meanwhile, investors are shifting their focus to the upcoming inflation data, particularly the Producer Price Index (PPI) and Consumer Price Index (CPI), scheduled for release in the coming days [2]. These reports are critical in assessing the Fed’s ability to balance its dual mandate of maximum employment and stable inflation.

Analysts remain divided on the implications of the weak labor data. While some view it as a sign of a cooling economy and potential recession, others highlight the Fed’s balancing act with inflation, which remains above the 2% target. The central bank’s next move will be closely scrutinized, as it seeks to prevent economic downturn without exacerbating inflationary pressures. The market’s muted reaction to the Fed’s potential easing suggests lingering concerns over macroeconomic resilience and fiscal policies [4].

Source:

[1] The Fed ought to patch the wound left by August's jobs report (https://www.cnbc.com/2025/09/08/cnbc-daily-open-the-fed-ought-to-patch-the-wound-left-by-augusts-jobs-report.html)

[2] Fed Rate Cut Hopes Rise: Bitcoin Price Doesn't Follow (https://beincrypto.com/fed-rate-cut-hopes-rise-bitcoin-price-doesnt-follow/)

[3] Bitcoin (BTC) Doesn't Cheer Fed Cut Bets. What Next? (https://www.coindesk.com/markets/2025/09/06/bitcoin-doesn-t-cheer-fed-cut-bets-what-next)

[4] Bitcoin Stays Below $112K After Tough Jobs Report and Fed ... (https://finance.yahoo.com/news/bitcoin-stays-below-112k-tough-171340787.html)