Bitcoin volatile as the market awaits US employment data

As the market anticipates the release of August's U.S. employment data later today, bitcoin's price is experiencing notable volatility, analysts said.

Bitcoin BTC -1.22% is trading around $55,975 and is down a muted 1.5% in the past 24 hours. Ether has also posted a decline and is down 1% in the same period, according to The Block's Prices Page .

It's a big week for labor data in the United States. Thursday's ADP private payroll data showed that growth slowed in August — its weakest monthly print since 2021. This fuelled fears of an impending economic downturn and increased expectations that the U.S. Federal Reserve would be forced to take preventative action.

Today's U.S. jobs report for August is poised to be a crucial determinant of the size of any potential forthcoming interest-rate cut by the Fed, with a decision due by the central bank on Sept. 18. The Bureau of Labor Statistics will release its monthly report at 8:30 a.m. E.T. on Friday, with expectations that non-farm payrolls increased by 165,000 in August. The unemployment rate fell to 4.2%, based on consensus estimates from Bloomberg .

Bitcoin market volatility to persist

Ahead of the Federal Open Market Committee meeting in mid-September, the CME FedWatch tool shows interest rate traders forecasting a 59% chance of a 25-basis-point cut and a 41% chance of a 50-basis-point cut later this month.

Amid the anticipation of a potential rate cut, one analyst indicated that volatility in the bitcoin market is likely to continue. "The market is expected to remain volatile, and although institutional investments and ETFs are likely to play a crucial role in shaping market stability, though volatility will persist," OTC Capital CEO Brian Dixon told The Block.

BRN analyst Valentin Fournier highlighted ongoing trends that are exacerbating market volatility. "Bitcoin exchange-traded funds are experiencing significant outflows, totalling $900 million over the past week. The upcoming U.S. job reports may not boost market sentiment, although heightened volatility could create opportunities for trend reversals," he told The Block.

In the past 24 hours, the global cryptocurrency market cap declined by 2.1% — now standing at $2.06 trillion. Bitcoin dominance is at 53.8%, and ether dominance is at 13.8%, according to CoinGecko data .