Bitcoin Surges Above $119,000 on Jobs Report Fueling Rate Cut Bets

Bitcoin reached a fresh high above $119,000 as traders reacted to softer-than-anticipated private payroll figures from ADP. The cryptocurrency climbed sharply after the report revealed a surprising decline in U.S. private sector employment, heightening speculation around Federal Reserve policy easing. Over the past month, the Bitcoin price has advanced by 7%, reflecting sustained investor interest amid evolving economic signals.

The ADP National Employment Report indicated a drop of 32,000 jobs in September, falling well short of the forecasted gain of 50,000 positions. This marked the second consecutive month of negative payroll growth, underscoring a cooling labor market that caught many observers by surprise. Investors quickly linked the data to broader signs of economic moderation, pushing risk-sensitive assets like Bitcoin higher in anticipation of looser monetary conditions.

Crypto Market Gains Extend to Ethereum and Solana

Ethereum followed Bitcoin's lead, touching $4,403.61 and posting a roughly 10% increase over the prior week. The second-largest cryptocurrency benefited from the same macroeconomic tailwinds, with traders positioning for potential liquidity boosts from Federal Reserve actions. Solana also joined the upward movement, climbing to $225.70 with an 11% weekly rise that highlighted its resilience in a bullish environment.

Recent revisions to labor market data have only intensified concerns about a potential slowdown. August's figures were adjusted downward to show a loss of 3,000 jobs, amplifying the narrative of weakening hiring trends. Cooling inflation readings and softer labor force participation rates have collectively built a stronger case for the Fed to implement rate reductions sooner rather than later.

Market participants now see a heightened probability of Federal Reserve rate cuts, with odds for at least a 50 basis point drop by the end of 2025 rising to 92%. Treasury yields declined in response, with two-year note rates falling seven basis points to 3.54%, signaling expectations of easier policy ahead. The dollar weakened against major currencies, further supporting the appeal of assets like Bitcoin that thrive in low-rate settings.

This environment echoes historical patterns where cryptocurrencies tend to strengthen during autumn months, driven by seasonal liquidity flows and policy optimism. September's labor data revisions, combined with ongoing government funding uncertainties, have created a backdrop ripe for digital asset appreciation. Bitcoin's treasury strategies among institutions, including holdings exceeding $2 billion in related securities by mid-year, underscore growing mainstream adoption.

Ethereum's performance stands out amid predictions that it could challenge new all-time highs by early 2026, supported by institutional inflows and network upgrades. Solana, meanwhile, has outperformed Ethereum on a percentage basis in recent months, with analysts forecasting continued outperformance through the fourth quarter. These gains align with a broader sentiment shift, where weakening economic indicators prompt capital rotation into high-growth sectors like blockchain technology.