US Unemployment Soars to 237K – Fed Rate Cut Could Trigger Bitcoin Bull Run

New data from the Labor Department showed that jobless claims rose to 237,000 in the week ended August 30, above market expectations of 230,000.

The US labor market continues to cool with many weak employment indicators. ADP reported that the private sector added only 54,000 jobs in August, lower than the forecast of 68,000.

Together with a trade deficit that widened to $78.3 billion, the figures suggest that US economic growth is slowing, raising concerns among investors and policymakers.

Markets viewed the unemployment data as a sign that the Fed's tightening policy has pushed the US economy to a risk threshold.

Investors are almost certain that the Fed will cut interest rates by 25 basis points at its September 16-17 meeting. UBS predicts that the Fed may have to go even further, cutting by as much as 100 basis points this month to prevent further deterioration in the labor market.

Wall Street took the weak jobs data and Powell's dovish comments as a signal of a policy shift. The Fed's rate cut could help liquidity and short-term stocks, but concerns remain about whether a recession can be avoided.
If the labor market continues to deteriorate, the Fed may have to accelerate interest rate cuts, affecting currencies, bonds, stocks and fueling the rally in gold and Bitcoin.
What does this mean for Bitcoin?
Expectations of a sharp Fed rate cut are drawing the attention of crypto traders. Low interest rates could weaken the USD and boost demand for alternative assets.

As a result, Bitcoin could regain momentum after a difficult period, with many analysts suggesting that conditions are favorable for it to move towards old peaks.