<div id="readability-page-1"><div><div>The odds of a Federal Reserve interest rate cut in September surged following a surprisingly weak U.S. jobs report, reigniting bullish sentiment across crypto markets heading into a traditionally volatile trading season.What Happened: According to Polymarket data as of August 1, there is now a 70% chance the Fed will cut rates by 25 basis points at its September 17 meeting, a significant jump from just days prior.Meanwhile, bets on a 50-basis-point cut stand at 6.8%. This comes after the U.S. economy added only 73,000 jobs in July, far below the consensus estimate of 110,000.Markets were further rattled by a downward revision of 258,000 jobs from May and June, the sharpest two-month downgrade since the onset of COVID-19 in 2020. The unemployment rate ticked up to 4.2%, while wage growth remained stronger than expected at 0.3% month-on-month and 3.9% year-on-year.Also Read: The $100 Billion Bitcoin Bet: How Treasury Companies Are Fueling The Crypto RunWhy It Matters: For crypto investors, these signals are meaningful.&#34;This is absolutely a game changer,&#34; Greg Magadini, Director of Derivatives at Amberdata, told Benzinga. &#34;The Fed has had the luxury of holding rates higher-for-longer because the jobs market remained strong. That narrative is now in question.&#34;Magadini explained that the sharp revisions and weak July headline caught markets off guard, pushing the U.S. dollar lower and sending bond yields falling. &#34;This gives the Fed room to cut without appearing to cave to political pressure,&#34; he said, referring to the Trump administration's public criticism of Fed Chair Jerome Powell.Speaking with Benzinga, Anndy Lian, a blockchain advisor and author, said the rate cut odds lean favorably for crypto. &#34;Lower interest rates reduce the opportunity cost of holding non-yielding assets like Bitcoin BTC/USD and Ethereum ETH/USD,&#34; he noted, but added that the market's reaction will also depend on how the Fed communicates its strategy.<div><div>Disclosure: 82% of retail CFD accounts lose money</div></div>The shift in expectations is playing out in prediction markets. Data from Polymarket shows a sharp rise in bets favoring a September rate cut. A separate contract for a December decision also now leans heavily toward further easing, with over 60% expecting another 25-basis-point cut.Tom Bruni, VP of Community at Stocktwits, noted that crypto is entering a seasonally weak window from August through mid-October. &#34;We've already seen ‘good news' fail to drive prices higher. With the Fed now more likely to ease, that could support prices — but only if economic deterioration doesn't accelerate into something more serious.&#34;Sunil Raina, CEO of CereBree, echoed those thoughts: &#34;Unless the Fed wants to risk breaking the economy, a September rate cut now looks like the only sensible move.&#34; But he warned that inflation and geopolitical risks remain, keeping volatility elevated.What’s Next: In the background is a deeply divided Fed navigating political pressure.President Donald Trump has continued his public attacks on Powell, calling him a &#34;stubborn MORON&#34; in a Truth Social post and urging the Federal Reserve Board to intervene directly.While the Fed has so far resisted acting prematurely, the weakening labor data may offer cover to make a policy shift without appearing politically compromised, a dynamic that could heavily influence the path of Bitcoin and risk assets in the coming weeks.<ul> <li>SEC Launches ‘Project Crypto’ — Here’s What It Means For You</li> </ul>Image: Shutterstock</div></div></div>

ETHE

The U.S. jobs report revealed only 73,000 jobs added in July, below expectations, leading to a 70% chance of a Federal Reserve rate cut in September. This has sparked bullish sentiment in crypto markets, particularly for Bitcoin and Ethereum. Experts suggest that lower interest rates could benefit non-yielding assets, but market reactions will depend on the Fed's communication. The Fed faces political pressure, and while a rate cut seems likely, inflation and geopolitical risks may keep volatility high.

- The likelihood of a Federal Reserve interest rate cut in September increased to 70% following a weak U.S. jobs report, which showed only 73,000 jobs added in July.  
- This shift in expectations has led to bullish sentiment in crypto markets, as lower interest rates could reduce the opportunity cost of holding non-yielding assets like Bitcoin and Ethereum.  
- The Fed's potential policy change is influenced by political pressures and economic conditions, with analysts suggesting that a rate cut may be necessary to avoid further economic deterioration.  

Bitcoin, Ethereum, XRP Struggle After Underwhelming Jobs Report: Will A September Rate Cut Save The Bull Run?