### Bitcoin Stays Steady Despite Soft Jobs Report: What It Means for the Fed's Next Moves

 ### Bitcoin Stays Steady Despite Soft Jobs Report: What It Means for the Fed's Next Moves

Bitcoin's response to the latest U.S. jobs report has been surprisingly muted, even as financial markets react strongly and traders adjust their expectations for Federal Reserve rate cuts. The July jobs report, released on Friday morning, revealed a softer-than-expected jobs market, which has significantly influenced traditional financial instruments but left the price of Bitcoin largely unchanged.

The Bureau of Labor Statistics reported that the U.S. economy added just 114,000 jobs in July, falling short of the anticipated 175,000 and significantly lower than June's revised total of 179,000 (originally reported as 206,000). The unemployment rate also ticked up to 4.3%, surpassing forecasts and rising from June’s 4.1%.

Despite this underwhelming jobs data, Bitcoin’s price remains steady, trading at around $64,500—essentially flat compared to its level before the report was released and only slightly changed from 24 hours ago. This lack of reaction is in stark contrast to the turbulence seen in traditional markets.

In response to the jobs data, the 10-year Treasury yield plummeted 15 basis points to 3.83%, while the two-year yield dropped a full 23 basis points to 3.93%. Both yields are now at their lowest levels in over a year. Stock markets, however, did not respond positively; Nasdaq futures fell 2.3%, and the S&P 500 dropped by 1.6%. 

Other assets have also been affected: the U.S. dollar decreased by 0.6%, while gold surged 1.3%, reaching a new record high of $2,513 per ounce.

Additional details from the report show that average hourly earnings increased by 0.2% in July, below the expected 0.3% and the previous month's 0.3%. On an annual basis, earnings were up 3.6%, falling short of the expected 3.7% and the previous 3.8%. Average weekly hours also missed forecasts, coming in at 34.2 versus the expected 34.3.

In response to the softer jobs data, traders are now significantly adjusting their bets on the Federal Reserve’s upcoming actions. The market had already priced in a 25 basis point rate cut for September, but now there’s a 70% chance of a 50 basis point cut, a substantial increase from the 22% chance predicted just a day ago. Looking further ahead, traders are also speculating on a total of 125 basis points in rate cuts by the end of the year, compared to the previous consensus of 75 basis points.

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- Average hourly earnings

- FedWatch predictions

- Gold price record high