Bitcoin Volatility Surges Amid Disappointing US Jobs Report
Bitcoin (BTC) experienced significant price fluctuations on Friday following the release of August US nonfarm payroll data, which fell markedly short of market expectations. After reaching a September high of $113,400, BTC/USD declined nearly $3,000 within an hour, slipping below $111,000.
US Labor Market Shows Signs of Weakness
The US economy added just 22,000 jobs in August, well below the forecasted 75,000 increase. This marked the second-lowest monthly jobs gain since July 2021, with earlier months’ figures also revised downward. Analyst Adam Kobeissi highlighted that the labor market is “rapidly deteriorating,” noting a net loss of 357,000 full-time jobs in August.
Gold Reaches New Highs as Dollar Weakens
In response to the weak payroll data, the US dollar weakened sharply, while gold prices surged to record levels. The contrasting movement underscores investors’ flight to safe-haven assets amid growing concerns over the US economic outlook.
Fed Rate Cut Expectations Gain Momentum
Market participants widely interpret the disappointing employment figures as increasing the likelihood of an interest rate cut by the Federal Reserve at its September 17 meeting. CME Group’s FedWatch Tool confirms a heightened probability of such a policy shift, which is generally viewed as supportive for risk assets like Bitcoin.
Technical Analysis Points to Key Resistance and Support Levels
Despite the positive macroeconomic signals, Bitcoin’s price action remained subdued. Traders noted that BTC faces critical resistance near the 200-period simple and exponential moving averages on the four-hour chart, around $113,000. Reclaiming this level is seen as essential for sustained upward momentum.
Conversely, bearish analysts warn of a potential decline toward the $100,000 support zone, with some suggesting a further drop to the $92,000-$94,000 range to fill a CME futures gap if support fails to hold.
Outlook
Bitcoin’s immediate trajectory depends on its ability to maintain support above key technical levels amid evolving macroeconomic conditions. Investors and traders remain cautious, balancing the implications of a weakening labor market against persistent volatility in crypto markets.
Disclaimer: This article does not constitute investment advice. Trading and investing involve risk, and readers should perform their own due diligence.
