Bitcoin Approaches $116K Amid Speculation of Fed Rate Cut Following Weak U.S. Job Data

Key Points

1. Bitcoin's surge toward $116,000 is linked to disappointing U.S. nonfarm payrolls data, which showed only 73,000 jobs added in July, far below the expected 147,000.

2. The unemployment rate remained steady at 4.2%, but weak labor market data suggests economic slowdown, increasing the likelihood of a Fed rate cut.

3. The CME FedWatch tool indicates an 82.1% probability of a rate cut in September, up from 39.2% the previous day.

4. A potential Fed rate cut could inject liquidity into financial markets, supporting Bitcoin's price recovery and broader crypto market optimism.

5. Former President Trump's comments urging the Fed to reduce interest rates and criticizing tariffs have added to market dynamics influencing Bitcoin's rise.