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Bitcoin traded higher on Friday, lifted by optimism over a Federal Reserve rate cut later this month, with investors now focused on key U.S. nonfarm payrolls data for confirmation.
Bitcoin Recovers from August Declines
The world’s largest cryptocurrency rose 0.8% to $111,537.3 by 01:35 ET (05:35 GMT). Despite recent volatility, Bitcoin is up 2.6% this week, partially recovering from sharp losses in late August when it tumbled from record highs above $124,000.
Fed Rate Cut Bets Drive Sentiment
Crypto markets have drawn support from dovish commentary by several Fed officials, who noted that a cooling labor market increases the likelihood of a rate cut.
- Fed Chair Jerome Powell recently acknowledged risks from labor weakness, keeping easing expectations alive.
- Job openings and jobless claims released earlier this week both missed forecasts, strengthening the case for Fed action.
- Fed fund futures show markets pricing in a 96% chance of a 25bps cut at the September 16–17 meeting, CME FedWatch data indicated.
Lower borrowing costs typically support risk-driven assets such as crypto, by boosting liquidity and freeing up capital for speculation.
Nonfarm Payrolls in Focus
The next catalyst will be Friday’s August nonfarm payrolls data. Economists expect another month of subdued job gains, reinforcing the narrative of a cooling labor market. A weaker-than-expected print could cement expectations for September easing and extend Bitcoin’s rebound.
Altcoins Remain Muted
While Bitcoin regained ground, broader crypto prices underperformed:
- Ethereum (ETH): down 0.6% to $4,338.67 – also nursing weekly losses.
- Solana (SOL): down 0.9%, while Cardano (ADA) inched up 0.2%.
- Dogecoin (DOGE): flat, while $TRUMP gained 0.6%.
Despite muted action in altcoins, Bitcoin’s resilience ahead of the jobs report underscores its role as the primary risk barometer in crypto markets, with traders watching closely for U.S. macroeconomic cues.
