US Jobs Report Suggests Fewer Rate Cuts but Remains Bullish for Bitcoin: Grayscale

The recent U.S. jobs report for September indicates fewer expected interest rate cuts, but remains bullish for Bitcoin, according to Grayscale’s head of research, Zach Pandl. The report revealed that 254,000 jobs were added, surpassing economists’ predictions of 140,000, signaling robust economic growth. Despite the possibility of fewer rate reductions, Pandl noted that discussions around larger government deficits and solid growth could still boost investors' risk appetite, benefiting Bitcoin in this favorable environment.

Following the release of the jobs data, Bitcoin's price surged to over $62,300 on October 4, reinforcing the narrative of a potential "Uptober" rally for Bitcoin during the fourth quarter. With futures markets pricing in a 0.25% rate cut at the Federal Reserve’s November meeting, and the continued decrease in BTC held on centralized exchanges, market sentiment remains optimistic.

Grayscale, the largest crypto asset manager, sees Bitcoin poised to benefit in this environment as investors continue to favor riskier assets amid a positive economic outlook.