Weak Jobs Report Could Send Bitcoin Soaring or Fizzling

The US Bureau of Labor Statistics is set to release its July nonfarm payrolls report today. Economists predict a gain of just 83,000 jobs and an unemployment rate steady at 4.2%. Bitcoin traders are curious about whether the reaction will mirror June's report.

Last month, the reported 57,000 new jobs fell short of forecasts for around 110,000. Weak hiring data typically leads to bets that the Federal Reserve will keep rates low, which eases liquidity conditions and supports Bitcoin.

In June, Bitcoin jumped 4% to near $62,000 after the report's release, then climbed toward $64,000 over the weekend as traders priced out a rate hike. However, this rally did not hold, with Bitcoin slipping around 3% by July's end and trading near $63,080.

A stronger-than-expected May jobs report weakened rate cut hopes and pressured Bitcoin in the past, as the economy added 172,000 jobs against lower forecasts. Similarly, a January report that nearly doubled expectations pushed Bitcoin toward $65,000 support as Treasury yields rose.