Jobs Report May Send Bitcoin Tumbling Despite Recent Rally

The recent June jobs data release lifted Bitcoin's price to nearly $62,000. However, Friday's jobs report may have a different effect on the cryptocurrency.

Last time around, in July 2, the US economy added only 57,000 payrolls, far below the forecasted 115,000. As a result, Bitcoin jumped 4% and continued to climb towards $64,000 as traders believed it would keep the Federal Reserve from hiking rates.

This time around, economists expect the jobs report to show an increase of around 85,000 to 88,000 payrolls, nearly double the previous month's print. Employers likely maintained a steady hiring pace in July despite geopolitical tension and elevated inflation.

A beat in this report would argue against any rate cut. Fed officials have already hinted at another hike, with three policymakers dissenting in favor of one at last week's meeting. This combination puts more weight on Friday's print than markets have placed on a single jobs report in months.