Bitcoin Volatility and Expectations on Interest Rates

🔴 Following the release of the monthly US employment data, Bitcoin’s volatility has intensified. Traders were caught off guard by a brief price surge followed by a sharp decline in the cryptocurrency’s value.

🔴 After the publication of the statistics, market expectations for a rate cut of 25 and 50 basis points have become nearly equal—53% and 47%, respectively. This shift is due to the August non-farm payroll numbers falling short of forecasts, raising concerns about the health of the labor market.

🔴 The current restrictive monetary policy has been effective in restoring economic balance and reducing inflation. With the economy now in equilibrium and inflation moving towards the 2% target, it is seen as the right time to reduce the degree of policy restrictiveness by lowering the target range for the federal funds rate.