“Bitcoin Fails to Break $112K Following Jobs Report, Investors Eye Fed Rate-Cut Bets”

Bitcoin (BTC) remains under $112,000 after the U.S. jobs report showed just 22,000 new positions in August, well below the 75,000 forecast. The data has intensified expectations of an upcoming Federal Reserve rate cut, but BTC has yet to rally.

Jobs Report Highlights

The report also revised June and July job growth downward by 21,000, with June showing a net loss of 13,000 jobs. Sectors such as manufacturing, construction, wholesale trade, and professional services saw declines, while health services and leisure & hospitality posted gains.

Market analysts warned that these figures indicate potential labor market weakness. Marc Chandler of Bannockburn Global Forex noted that upcoming benchmark revisions could reduce historical job growth by 500,000 to 1 million, likely reinforcing Fed rate-cut bets.

Bitcoin Technical Outlook

BTC briefly spiked above $113,300 on hopes of softer monetary policy but quickly dropped back below $111,982, confirming a double-top breakdown from late August. The 200-day simple moving average at $101,700 is the next key support.

The double-top pattern, which forms when price peaks twice and fails to surpass the first high, signals potential for further downside — similar to February’s pattern, which preceded a multi-week sell-off to about $75,000.

Treasury Yields and Inflation

Treasury yields may see heightened volatility around the anticipated Fed cuts. While lower yields could provide short-term support, persistent inflation and continued fiscal spending may drive yields higher.

Investors are also watching August CPI data due next week. Core CPI is expected to rise 0.3% month-over-month (3.1% YoY), and headline CPI is forecast at 2.9% YoY, underscoring inflation as a key factor for BTC and broader market sentiment.