Bitcoin traders are watching the U.S. August non-farm payrolls report, due Sept. 4, for clues on whether the Federal Reserve will ease its rate-hike stance at its September meeting. Weak labor signals following a surprise July jobs loss have kept dovish hopes alive, while analyst Michaël van de Poppe expects Bitcoin's correction to be over and targets $82,700.
Bitcoin traders are bracing for the U.S. Bureau of Labor Statistics' August payrolls report, due Sept. 4, since the numbers will shape expectations for the Federal Reserve's September policy meeting. Oil prices have also climbed, adding to inflation concerns, alongside recent hawkish comments from Fed Chair Kevin Warsh.
Payrolls Data Could Sway the Fed's Next Move
Economists expect the report to show the U.S. economy created about 56,000 jobs in August, a rebound from a surprise loss of 23,000 jobs in July. The unemployment rate is expected to hold at 4.1%.
However, recent revisions have painted a less rosy picture: May and June payrolls were revised down by a combined 103,000. The labor force participation rate stayed at 61.4% in July, and average hourly earnings rose 3.2% from a year earlier.
ADP data added to the weak signal, as U.S. businesses created just 38,000 jobs in August, ADP reported, the smallest monthly rise since January. Educational and health-related occupations recorded the strongest growth, while manufacturing and professional occupations declined.
Ahead of the FOMC's September 15-16 meeting, economists believe a payroll gain above 100,000 alongside a stable or falling unemployment rate would signal a strong labor market. A result close to forecasts is likely to leave investors largely unmoved by upcoming inflation data. But a weaker reading or higher unemployment could ease worries about a Fed rate hike, and such a dovish shift could aid risk assets like Bitcoin, since traders' risk appetite tends to grow when policy eases.
Analyst Sees Bitcoin Reclaiming $82,700
Crypto analyst Michaël van de Poppe said Bitcoin may have finished its latest correction just ahead of the payrolls report. According to a post on X: "Quite honestly, this looks like we're going to see much more upside on the markets." He added that he expects Bitcoin to keep running toward $82,700.
Bitcoin was trading near $77,900, having bounced off support around $76,200, according to the chart Poppe shared. Resistance sits around $79,300, and a break above that level would open the path toward his $82,700 target.
Poppe also said Bitcoin's sideways trading could shift momentum toward altcoins. He noted that the longer Bitcoin stays stuck in its current range, the longer altcoins are likely to outperform it.
Source: CoinGape
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