August jobs release boosts Bitcoin and Ethereum prices
Ethereum gained by more than 2% and Bitcoin by less than 1% after the report’s publication.
The labor department reports that the US added 315,000 jobs in August and the unemployment rate rose to 3.7%.
Bitcoin and the jobs report
Every piece of information has an impact on the Federal Reserve’s decision to raise interest rates at its September FOMC meeting.
A positive jobs report would have increased the Fed’s propensity for a significant rate increase. Despite the fact that the US has added 315,000 jobs, this number is lower than the 528,00 jobs added in July.
Additionally, the Fed may welcome the 3.7% increase in the unemployment rate. According to experts, growing labor market involvement is what caused unemployment to increase.
As long as it does not raise inflation, the Fed would succeed in luring out-of-work individuals back into the labor force.A 75 bps rate increase is still preferred by the CME Fed Watch tool.
Additionally, that will be consistent with the “pain” that Fed Chair Jerome Powell promised. A 75 bps increase was also endorsed by James Bullard of the St. Louis Fed and Neel Kashkari of the Minnesota Fed.
According to Raphael Bostic of the Atlanta Fed, there is enough evidence for him to support a 50 bps increase. It is unlikely that one employment report will be sufficient to accomplish that goal, though.
The increase in Bitcoin and ETH is similarly brief and insignificant.
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It is unlikely that the August jobs report will change much. Significant change is dependent on the Consumer Price Index for August, which will be announced the following week.
The Fed will need only that to complete the puzzle before making its choice.
