- U.S. payrolls fell unexpectedly, reinforcing expectations of a Fed rate pause.
- Markets now await next week’s inflation data for clues on future Fed policy.
- Bitcoin stayed resilient as weak jobs data boosted hopes for steady interest rates.
The U.S. labor market unexpectedly weakened in July as employers cut 23,000 jobs, defying expectations for payroll growth. The unemployment rate held at 4.1%, matching economists’ forecasts.
The Bureau of Labor Statistics also revised May and June payrolls down by a combined 103,000 jobs, indicating the labor market was weaker than previously reported. Healthcare remained the main source of private-sector hiring, while local government education and retail recorded the largest job losses. Average hourly earnings rose 3.2% from a year earlier, even as inflation continued to weigh on household budgets.
The weaker employment report is likely to reinforce expectations that the Federal Reserve will keep interest rates unchanged as policymakers continue to assess the labor market and inflation.
Fed Outlook Shifts
Investors scaled back expectations for another Federal Reserve interest rate increase after the weaker-than-expected jobs report. CME FedWatch data now shows markets expect the central bank to keep interest rates unchanged in September.
Related: Bitcoin Price Soars as Weak US Jobs Report Revives Fed Rate Cut Hopes
Investors are now looking to next week’s inflation report for fresh clues on the Federal Reserve’s next policy move.
Crypto Market Watches Macro Signals
Crypto investors also watched the U.S. jobs report for clues about the Federal Reserve’s next interest rate decision. Fabian Dori, CIO at Sygnum Bank said weaker payroll growth could support Bitcoin if it strengthens expectations that the Federal Reserve will keep interest rates steady.
QCP Capital said the broader macroeconomic outlook remains uncertain. The firm added that Bitcoin has remained resilient despite the recent Coldcard exploit and corporate Bitcoin sales, suggesting investors have largely avoided panic selling across the crypto market.
Related: Crypto Trends on X in 2026: Regulation, AI, and DeFi Lead Discussions
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