In the latest Trump crypto news, the U.S. labor market delivered a stronger-than-expected performance in August, with employers adding 162,000 jobs versus economists’ forecast of around 65,000. The unemployment rate remained unchanged at 4.1%.
Bitcoin reacted almost immediately, falling from above $81,000 and moving into a range between the high $78,000s and low $80,000s as traders reassessed the Federal Reserve’s next policy move.
The stronger jobs report has raised a key question for Bitcoin bulls: will the data disrupt the rally that has been supported by renewed institutional demand, or will it simply create additional volatility ahead of the Fed’s September 15–16 meeting?
August’s job gains were considerably stronger than the roughly 31,000 average monthly increase recorded over the previous year. The figures also marked a significant improvement from the weaker hiring trend seen earlier in the summer.
A resilient labor market could reduce the Fed’s urgency to lower borrowing costs. It may instead give policymakers more reason to maintain restrictive rates or even consider tighter monetary policy at the upcoming meeting.
Traders quickly adjusted their positions, increasing the probability assigned to a potential rate hike rather than a cut. Bitcoin’s decline reflected that shift in expectations.
The repricing does not represent an actual Fed decision. It reflects how investors currently view the policy outlook, with those expectations often influencing risk assets well before officials announce their decision.
Donald Trump, meanwhile, continued to call for lower interest rates on Truth Social. He argued that the U.S. had strengthened its credit position and therefore deserved cheaper borrowing costs. Trump also criticized the Federal Reserve Board and urged officials to take action in what he described as the national interest.
The jobs report pushed markets in the opposite direction. Strong employment conditions generally reduce the need for immediate monetary easing, leading traders to increase bets on a rate hike rather than the cuts Trump has been demanding.
Bitcoin has repeatedly demonstrated its sensitivity to Fed expectations this summer. Kevin Warsh’s hawkish comments at Jackson Hole previously sent Bitcoin toward $77,000, while the odds of a rate hike climbed to 57%.
That sentiment shifted on September 3 after Fed Governor Christopher Waller delivered more neutral comments. Bitcoin responded with a 5% gain, while U.S. spot Bitcoin ETFs recorded $730.8 million in net inflows.
Rate-hike expectations later moved back toward 50%, leaving investors nearly evenly split between a hike and a hold as the jobs report approached.
The continued ETF inflows are particularly important because they show that institutional demand remained resilient despite changing expectations around monetary policy. The August employment data has pushed sentiment toward a more hawkish stance, but it has not erased the recent strength in Bitcoin investment products.
Trump Crypto News: September Fed Decision Could Set Bitcoin’s Next Direction
The September 15–16 Federal Reserve meeting is now the next major catalyst for Bitcoin and broader financial markets. Until then, traders are likely to continue adjusting their positions as additional economic data arrives.
If strong employment conditions keep rate-hike expectations elevated, restrictive monetary policy could remain a major obstacle for Bitcoin and other risk assets.
An unexpected rate cut could have the opposite effect and potentially accelerate Bitcoin’s rally, particularly if institutional ETF demand remains strong. However, the reason for any cut would be just as important as the cut itself.
A reduction in rates triggered by a sharp economic slowdown could produce a negative reaction across risk markets. Crypto assets could initially fall if investors interpret monetary easing as a response to worsening economic conditions rather than as a sign of improving financial conditions.
For now, traders remain close to evenly divided between a September rate hike and a hold. The stronger-than-expected August jobs report has shifted sentiment toward tighter policy, but the data alone has not determined what the Fed will ultimately do.
