Bitcoin (BTC) remains under $112,000 following Friday’s disappointing U.S. jobs report, which showed only 22,000 new positions in August — far below the expected 75,000. The data has intensified speculation of a Federal Reserve rate cut, but BTC has failed to rally on the news.
Jobs Report Overview
The report also revised June and July job gains downward by 21,000, with June now reflecting a net loss of 13,000 jobs. Manufacturing, construction, wholesale trade, and professional services saw declines, while health services and leisure & hospitality showed gains.
Analysts described the report as signaling labor market weakness. Marc Chandler, Managing Director at Bannockburn Global Forex, noted that upcoming benchmark revisions could reduce historical job growth by 500,000 to 1 million, likely reinforcing Fed rate-cut expectations.
Bitcoin Price Action
BTC briefly spiked above $113,300 on hopes of easier monetary policy but quickly fell back below $111,982, confirming a double-top breakdown from late August. The 200-day simple moving average at $101,700 is the next key support level.
The double-top pattern — formed when price peaks twice and fails to surpass the first high — signals a potential downtrend. This mirrors February’s pattern, which preceded a multi-week sell-off to around $75,000.
Treasury Yields and Inflation
Volatility in Treasury yields may increase around upcoming Fed cuts. Lower yields could provide short-term support, but persistent inflation and ongoing fiscal spending may push yields higher.
Investors are also watching August CPI data, expected next week. Core CPI is projected to rise 0.3% month-over-month (3.1% YoY), with headline CPI at 2.9% YoY, keeping inflation a key factor for BTC and broader market sentiment.
