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[BUSINESS] · United States, Japan · 8 sources

Crypto markets react to weak U.S. jobs data and upcoming inflation reports

Cryptocurrency markets are navigating significant volatility driven by shifting U.S. macroeconomic indicators. Recent labor data revealed that U.S. nonfarm payrolls unexpectedly fell by 23,000 in July, a sharp contrast to the 80,000 forecast. This weakness in the employment market has led traders to increase bets on a Federal Reserve interest rate pause in September, with CME Group’s FedWatch Tool showing a 56% probability of a pause.

Market attention is now shifting toward upcoming inflation data, specifically the Consumer Price Index (CPI) and Producer Price Index (PPI) releases. Economists expect headline inflation to ease slightly to 3.4% year-over-year. Additionally, geopolitical tensions in the Strait of Hormuz are impacting oil prices, which could further influence inflation outlooks and Federal Reserve policy.

Bitcoin has experienced price fluctuations, recently slipping below $64,000 before testing various support and resistance levels. While large Bitcoin wallets have shown significant accumulation, some on-chain indicators suggest the broader market may still face bearish conditions through the second half of 2026. Other global factors, such as the Japanese yen moving toward the 160-per-dollar level, are also contributing to the complex liquidity environment for risk assets.

Entities

Bitcoin · CME Group · Federal Reserve · Japan · Japanese yen · Strait of Hormuz · U.S. Bureau of Labor Statistics

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