Bitcoin recovered to hold above the $61,000 level after US labor market data showed slower-than-expected job growth. The report revealed that non-farm payrolls increased by a modest margin, falling short of economists’ forecasts and prompting investors to reassess the likelihood of near-term Federal Reserve interest rate hikes.
The surprise slowdown in the US jobs market weighed on the technology-heavy Nasdaq 100, which erased recent gains. This pullback in tech stocks, particularly within the artificial intelligence sector, encouraged a rotation of capital toward Bitcoin and gold—both seen as hedges against tighter monetary policy and economic uncertainty.
Onchain metrics indicate that Bitcoin may be nearing a bottom. Analysts point to a decline in the realized profit-to-loss ratio to its lowest level since 2022, with the net percentage of Bitcoin supply in profit turning negative. Historically, such signals have aligned closely with market cycle troughs, reflecting waning selling pressure after recent price rejections near $82,500.
Meanwhile, crude oil prices stabilized below $70 a barrel after diplomatic progress between the US and Iran eased geopolitical concerns. The drop in oil prices is significant because it reduces inflationary pressures, potentially paving the way for renewed monetary stimulus. The Federal Reserve’s balance sheet currently stands near $6.73 trillion, and its policy allows for ongoing purchases of Treasury securities that could expand liquidity.
Gold prices also responded positively, clawing back some losses following the weaker economic data. This movement suggests investors are positioning for looser monetary conditions and higher demand for scarce assets like gold and Bitcoin. Market expectations for a Federal Reserve rate hike by September fell sharply, reflecting diminished confidence in sustained tightening amid the subdued labor market.
- US non-farm payroll gains came in well below projections, raising doubts about Fed tightening timelines.
- Nasdaq 100 futures declined, pressured by losses in AI-related stocks.
- Bitcoin onchain data highlights seller exhaustion, with historically low profit-to-loss ratios.
- Oil prices dropped following renewed US-Iran negotiations, signaling easing inflation concerns.
- Gold rebounded, indicating renewed investor interest in inflation-resistant assets.