Bitcoin Reclaims $112,000 as Economists Downplay Recession Concerns
On Wednesday, asset prices rose as bitcoin reclaimed $112,000, despite recent concerns over U.S. jobs data. The U.S. Bureau of Labor Statistics reported a downward revision of 911,000 jobs added in the past year, leading to immediate market reactions.
Key points include:
- Bitcoin dropped from $113,000 to $110,800 following the jobs report.
- Analysts have downplayed fears of recession; Michael Englund stated the revisions reflect long-term labor force trends rather than immediate economic conditions.
- Financial markets rebounded, with European stocks rising and altcoins like ether and XRP recovering losses.
- The S&P 500 futures traded 0.3% higher.
Stagflation Concerns
Fears of stagflation have been heightened but considered exaggerated by some analysts. Marc Chandler noted that U.S. GDP remains above the Federal Reserve's non-inflationary pace estimate.
Market expectations indicate:
- A 91% probability of a 25 basis point rate cut by the Fed on September 17.
- Anticipation of potential larger cuts by investment banks and traders.
Upcoming U.S. producer price index (PPI) and consumer price index (CPI) data could influence these expectations, potentially impacting risk assets.