Bitcoin price overcomes $50K, stocks slide after disappointing US jobs report
Nonfarm payroll data shows the worst U.S. jobs gain in seven months, limiting concerns of Federal Reserve tapering this year.
The S&P 500 slid to the intraday highs of Sept. 2 while Bitcoin (BTC) climbed to its highest levels in more than three months. The moves came as a key report on Sept. 3 showed that the United States economy added fewer jobs than anticipated, lowering the Federal Reserve’s likelihood to start unwinding its stimulus program this year.
The U.S. Bureau of Labor Statistics revealed that nonfarm payrolls (NFPs) grew by 235,000 in August, against expectations of 733,000 positions. Nevertheless, the unemployment rate inched lower to 5.2% from the previous month’s 5.4%.
Bitcoin rose by 3.41% to $50,961 in anticipation that a slowdown in the U.S. jobs sector would prompt the Federal Reserve to limit its taper tantrum.
The world’s best-known cryptocurrency struggled in the second quarter of 2021 amid a global economic rebound from the pandemic. It fell from around $65,000 to below $30,000 after facing additional headwinds from a full-fledged crypto ban in China and Elon Musk’s anti-Bitcoin tweets.
At the same time, the global economic recovery raised speculations that central banks would unwind their massive monetary support. In the U.S., Federal Reserve Chairman Jerome Powell said that the Fed would begin tapering by the end of 2021 if the economy achieves “maximum employment.”