US Jobs Report Reveals Major Payroll Revisions Impacting Bitcoin
The US July Employment Situation report revealed a payroll growth of only 73,000, with negative revisions for May and June totaling 258,000 jobs. This resulted in a three-month hiring average of just 35,000, indicating a significant slowdown reminiscent of the Covid crisis.
Key Insights on Bitcoin's Outlook
- Bloomberg Economics identified the revisions as a "black swan event," noting their statistical rarity.
- Anna Wong stated the labor market shifted from re-acceleration to cooling.
- André Dragosch from Bitwise highlighted that poor payrolls could benefit Bitcoin in the long term.
- Further downward revisions might necessitate emergency rate cuts, with a potential cut of 50 basis points in September indicated.
- Market expectations for Fed rate cuts rose sharply, with a 91% probability for at least one cut by mid-September.
- Bitcoin reacted to macroeconomic news, dropping to $111,920 before rebounding slightly as liquidity hopes increased.
- Spot Bitcoin ETFs saw a net inflow of $91.6 million on August 7, reversing a prior outflow trend.
As of now, Bitcoin is trading at $116,359. The market awaits further economic data to gauge the Fed's response to the current labor market situation.
