Bitcoin’s price surged toward the $116,000 mark following unexpectedly weak U.S. employment figures, intensifying market expectations of imminent Federal Reserve interest rate cuts.
The catalyst emerged from July nonfarm payrolls data revealing just 73,000 new jobs—barely half the anticipated 147,000—despite a steady 4.2% unemployment rate. This pronounced labor market slowdown signals broader economic fragility, prompting investors to anticipate Federal Reserve intervention.
According to the CME FedWatch tool, the probability of a September rate cut has more than doubled in a single day to 82.1%, up dramatically from the previous 39.2%. Such monetary easing would likely inject substantial liquidity into financial markets, a historically bullish catalyst for Bitcoin and digital assets.
Former President Donald Trump amplified market dynamics by publicly urging the Fed to reduce rates while criticizing tariff policies, adding political pressure to economic considerations. The convergence of these factors has accelerated Bitcoin’s upward trajectory as market participants position for expanded monetary stimulus.
Analysts suggest the potential rate cut could fundamentally support Bitcoin’s recovery and broader cryptocurrency market optimism by enhancing capital accessibility and devaluing traditional safe-haven assets.