Bitcoin volatile despite increased odds of rate cut after weak jobs data

Bitcoin ( BTC-USD ) price remained volatile on Friday, erasing early gains as investors still remain cautious following a weaker-than-expected jobs report. August’s nonfarm payrolls report showed the economy added only 22,000 jobs—well below the 75,000 consensus forecast and trailing July’s 79,000 increase. At the same time, the unemployment rate ticked up to 4.3% from 4.2% in July, matching expectations. Bitcoin prices climbed to $113,000 following the report’s release. But the rally was short-lived as it soon cooled down to $110,500. Ethereum ( ETH-USD ) and XRP ( XRP-USD ) fell 1.1% and 0.7%, respectively, over the same period. However, all of them turned green in the afternoon trading. Historically, Bitcoin has reacted positively to signs of lower interest rates, as it could be a tailwind for risk assets, and Bitcoin could be among the primary beneficiaries. The odds of a Fed rate cut increased following today’s data. “Bitcoin is well-positioned to outperform in the next round of monetary policy easing, especially after a period of cooled sentiment,” noted a recent Seeking Alpha analyst, adding that liquidity from monetary easing is the main driver of asset prices. Other crypto-related stocks, including MicroStrategy ( MSTR ) and MARA Holdings ( MARA ), were up in the afternoon. Meanwhile, Coinbase Global ( COIN ) was trading over 2% lower, while HIVE Digital ( HIVE ) and Hut 8 ( HUT ) were down over 1%. More on related tickers VanEck Crypto Monthly Recap For August 2025 Ethereum: Activity Growth Surged In August (Rating Upgrade) Ethereum Could Break Out Well Past It's All-Time Highs Public Firms' Bitcoin holdings surpass 1 million BTC US SEC unveils agenda to revamp crypto policies