Bitcoin Awaits Non-Farm Payrolls Report as Fed Rate Hike Worries Linger
The non-farm payrolls report for August is expected to be released on September 4th by the U.S. Bureau of Labor Statistics, and it will have a significant impact on expectations for the Federal Reserve's policy meeting in September.
Economists predict that the U.S. economy created about 56,000 jobs in August, following a surprise loss of 23,000 jobs in July. The unemployment rate is expected to remain at 4.1%.
The recent revisions have left a less rosy view of the labor market, with May and June having 103,000 fewer payrolls than initially reported. New private sector jobs data also signaled weakness in job growth, with U.S. businesses creating just 38,000 jobs in August, lower than anticipated.
If the employment report shows a strong labor market, it could keep investors from paying attention to upcoming inflation data and quell risks of a Fed rate hike despite inflation concerns. This dovish stance could aid risk assets like Bitcoin and crypto as traders' risk appetite tends to grow in conditions of economic policy easing.