Bitcoin Rises 4% Amid Economic Data Suggesting Fed Rate Cut

Bitcoin (BTC) rose by 4% over the week, reaching $116,000, driven by economic data suggesting a potential Federal Reserve interest rate cut.
The U.S. CPI figures showed higher-than-expected inflation, indicating persistence in price increases. Revisions to job data revealed nearly 1 million fewer jobs created than initially reported, marking a significant revision in history.
August's U.S. jobs report indicated only 22,000 new jobs, with unemployment increasing to 4.3%. Initial jobless claims reached their highest level since October 2021.
Economic concerns, including inflation and reduced job creation, have led to discussions of "stagflation."
Bitcoin's price action remains positive, with higher lows observed since September. Key support levels include the 200-day moving average at $102,083 and the Short-Term Holder Realized Price at $109,668.
Bitcoin-linked stocks had mixed performances. Strategy (MSTR) shares were flat, while MARA Holdings (MARA) and XXI (CEP) saw increases of 7% and 4%, respectively. MSTR continues to underperform and tests long-term support levels.
The CME's FedWatch tool indicates expectations of a 25 basis-point interest-rate cut in September, with three cuts anticipated by year-end, potentially boosting growth and crypto-linked equities.
The U.S. 10-year Treasury briefly dropped below 4%, possibly signaling a shift in risk sentiment toward growth. However, the dollar index (DXY) maintains multiyear support, presenting an inflection point.