Bitcoin Gains Traction as U.S. Job Growth Slows In August

The United States Labor Department reported that the nation added around 315,000 jobs in the month of August.

Although that number is more than what the government was expecting, it indicates that the net growth of new jobs is slowing down in America.

The new data released this Friday showcased that despite hiring rates are still going up, the percentage per month is slowly decreasing.

This can be seen as an indication that the several policies from the United States Federal Reserve regarding the increase of U.S. interest rates in order to tame the Nation’s inflation following the pandemic are starting to have an effect.

Meanwhile, the unemployment rate increased to 3.7% from 3.5%, showing that widespread layoffs by major corporations are beginning to affect workers. The wage growth from the prior month was 0.3%.

How This Data Affected Bitcoin

Right after the report’s release, Bitcoin (BTC) increased by 0.8%. At its upcoming monetary policy meeting in September, the Federal Reserve will have cover from further aggressive interest rate increases thanks to the weaker growth, which will also relieve downward pressure on risky assets like stocks and cryptocurrencies.

The revelation led to a modest increase in Bitcoin. The data could signify that the Federal Reserve has a clear path to continue its aggressive campaign to manage inflation by hiking interest rates and making borrowing money substantially more expensive.

The Employment Situation report for August, one of the last significant economic reports to be taken into consideration before the Federal Open Market Committee’s (FOMC) next meeting on September 21–22, may be one of the year’s most significant data points.

The effect on other Cryptocurrencies

Not just Bitcoin’s price fluctuated on Friday following the government report. Ethereum, the second largest cryptocurrency by market capitalization also saw its price change due to the Labor Department’s data announcement.

Ethereum was trading for $1,591, a 1.5% 24-hour jump. At one point it was up nearly 6%, though, touching $1,642. 

Ethereum is likely going to see an even higher influx of price fluctuation in September due to the much anticipated “Merge” that it will take place on September 15th.

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