Bitcoin Price Slips as Investors Await Key Labor Market Data and Fed Decision
The price of Bitcoin slipped on Wednesday as investors assessed the impact of weaker US manufacturing activity data and awaited key labor market figures that could influence an upcoming Federal Reserve interest rate decision. The Institute for Supply Management’s monthly measure of US manufacturing activity fell short of expectations, raising concerns about a potential economic slowdown.
The upcoming release of the August nonfarm payrolls report on Friday is expected to play a significant role in Fed Chair Jerome Powell’s approach to monetary policy. Powell has indicated a shift towards focusing on job losses rather than inflation, which could lead to lower interest rates and potentially benefit cryptocurrencies by freeing up liquidity for speculative trade.
Analysts predict a 25-basis point reduction in borrowing costs at the Fed’s upcoming meeting on Sept. 17-18, with current interest rates standing at 5.25% to 5.5%. In the crypto market, Bitcoin and other major cryptocurrencies experienced declines over the past 24 hours, with the global market cap dipping below $2 trillion.
Overall, the potential Fed rate cut and focus on job market data could have implications for cryptocurrency prices and market dynamics. Investors should stay informed and monitor developments in the labor market and monetary policy to make informed decisions about their investments.