Bitcoin Breaks Out to $113,200 After Weak Labor Data; Altcoins Across the Board

Cryptocurrencies surged on Friday as the US non-farm payrolls (NFP) report showed slower-than-expected job growth. This reinforced the belief that the Federal Reserve will soon cut interest rates, creating fresh momentum for risk assets, including Bitcoin and altcoins.

Bitcoin Surpasses $113,000, Gold Hits New High

At 09:59 ET (13:59 GMT), Bitcoin was up 2.3% at $113,220, its highest level in more than a week. For the week, the world's largest cryptocurrency has recovered more than 4%, erasing a sharp decline in August.

The market reacted quickly after the release of the labor data:

Spot gold rose more than 1%, hitting a record $3,594/ounce.

US stocks also maintained their upward momentum, reflecting expectations of lower interest rates in the short term.

NFP surprises, Fed faces pressure to cut interest rates

According to the US Department of Labor, the August NFP increased by only 22,000 jobs, much lower than the forecast of 75,000. The unemployment rate also increased to 4.3%, signaling a clear cooling of the labor market.

Interest rate futures indicate a 100% chance of a 25 basis point cut in September, with a 12% chance of a larger 0.5 basis point cut (CME FedWatch).

Altcoins follow Bitcoin's lead

While Bitcoin leads the rally, many major altcoins have rallied:

Ethereum (ETH): up 1.3% to $4,434, up nearly 1% for the week.

Solana (SOL): up 1.2%, up 4.2% for the week.

Cardano (ADA): up 3.5% for the day, up 3.5% for the week.

Meme coins also saw green: Dogecoin (DOGE) rose 2.2%, while $TRUMP added 1.4%.

A positive signal for the new cycle?

While the cryptocurrency market is lagging behind the recovery of other risk assets, the prospect of lower interest rates could usher in a new bull cycle. Higher liquidity and a return of speculative capital are expected to give Bitcoin a boost to its all-time high and help altcoins attract more investors.