October Fed Rate Cut Odds Rise After Weak U.S. Labor Data, Bitcoin Surges

U.S. private payrolls unexpectedly fell in September, raising market bets that the Federal Reserve will cut rates in October. This has coincided with a rise in Bitcoin price. Economists had expected an increase of 50,000 following a revised gain of 54,000 in August. The ADP National Employment Report showed a decline of 32,000 jobs, the steepest drop since March 2023. The weak data shifted investor expectations sharply, including a positive effect on Bitcoin. On Polymarket, the probability of the Fed keeping rates unchanged fell to only six percent.