Jobs Report Sparks Rate Hike Bets, but Bitcoin Analyst Remains Bullish
The US jobs report for August showed that the economy added 162,000 jobs, nearly triple the expected 55,000-58,000. The unemployment rate remained at 4.1%, and July's initially reported loss of 23,000 jobs was revised to a gain of 21,000.
The reaction in financial markets was swift, with Bitcoin dropping below $79,000 after being rejected at $82,400 earlier that day. The US stock market also fell, while Treasury yields and the greenback rose.
According to the Kobeissi Letter, a strong labor market can be negative news for risk assets when inflation remains high. This is because it gives the Federal Reserve more room to keep fighting inflation without worrying about triggering a sharp deterioration in employment.
Analyst Adam Livingston takes a different view, arguing that persistent inflation, rising debt, and the monetary response required to sustain the financial system strengthen Bitcoin's long-term value proposition.