Can an employment slowdown and lower interest rates boost Bitcoin?
Bitcoin ETF hopes have been dashed as the SEC delays decisions on new applications. However, crypto enthusiasts are looking for alternative catalysts, such as an employment slowdown and lower interest rates, to drive Bitcoin’s price.
Key Points:
- The US added 187,000 jobs in August, exceeding expectations.
- The unemployment rate for August was 3.8%, higher than forecasted.
- Bitcoin’s price remained relatively stable after the employment report.
- Traditional markets reacted positively, with stock index futures rising.
- Bitcoin experienced a sharp decline after SEC delays on spot Bitcoin ETF applications.
Bitcoin’s recent rally was quickly reversed after the SEC postponed decisions on spot Bitcoin ETF applications. With hopes for ETF approval dashed, crypto bulls are now looking for other factors to drive Bitcoin’s price. The employment report showed a rise in unemployment and a downward revision in job additions, but Bitcoin has not yet reacted positively. Traders are also predicting that the US Federal Reserve will maintain interest rates at its September meeting, with only a one-in-three chance of a rate hike in November.
Hot Take:
While an employment slowdown and lower interest rates may provide some hope for Bitcoin bulls, it remains uncertain whether these factors can truly act as catalysts for the cryptocurrency’s price. The SEC’s delay on ETF decisions has dampened market sentiment, and Bitcoin’s future movement will likely be influenced by a combination of various factors, both within and outside the crypto market.
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