Bitcoin and stock markets drop as US jobs market slows

Some truly dramatic job numbers from the United States caused the stock market to fall yesterday afternoon, followed by Bitcoin. The largest digital currency was initially supported by the falling dollar, but in the end fell alongside with it.

These negative mood was caused by a much weaker-than-expected jobs report for the United States in August. Furthermore, the revision for June indicated a contraction (a trend last witnessed in 2020).

Also worrying is that unemployment rose to 4.3 percent, the highest level in about four years. Businesses are struggling after all of Trump’s import threats and are clearly postponing investments. Could the Americans be heading for a recession?

The dollar is also taking a hit, falling to 1.17 against the euro. If this continues, it will soon become quite cheap to travel to the United States, but unfortunately, nobody wants to anymore.

With all this bad news, everyone will be watching the Federal Reserve. In these circumstances, will Jay Powell still dare to postpone a rate cut?

Safety

Analysts believe a price below $100,000 for Bitcoin by the end of September is a possibility, as investors are clearly seeking safety.

Meanwhile, gold, the ultimate safe haven, has reached another all-time high.