Trump Crypto News: Bitcoin’s $81K Rejection Raises Fed Rate Cut Concerns

In the latest Trump crypto news, U.S. employers added 162,000 jobs in August, significantly exceeding economists’ forecast of about 65,000. The unemployment rate remained unchanged at 4.1%.

Bitcoin reacted quickly, dropping from above $81,000 and moving between the upper $78,000s and lower $80,000s as traders reassessed expectations for Federal Reserve policy.

The key question is whether the stronger-than-expected jobs data will interrupt a Bitcoin rally that institutional investors have helped rebuild over recent weeks, or simply introduce more uncertainty ahead of the Federal Reserve’s September 15–16 meeting.

August hiring was also well above the average monthly increase of roughly 31,000 jobs over the previous 12 months. The rebound represented a notable improvement from the weaker employment growth seen earlier in the summer.

Such a strong labor-market reading reduces the immediate pressure on the Fed to lower interest rates and could give policymakers more justification to maintain restrictive conditions or consider tighter policy at the upcoming meeting.

Markets reacted by increasing expectations for a potential rate hike rather than a reduction. That shift was reflected almost immediately in Bitcoin’s price movement.

These changes represent market expectations ahead of the Fed meeting, not an actual policy decision. However, changing rate expectations can significantly influence risk assets well before the Federal Open Market Committee announces its decision.

Donald Trump responded on Truth Social by urging the Federal Reserve to reduce interest rates. He argued that the U.S. had become a stronger borrower and therefore deserved lower financing costs. Trump also criticized the Fed Board and called on officials to take what he described as a more patriotic approach.

Markets moved in the opposite direction. A stronger labor market generally reduces the need for immediate monetary easing, prompting traders to increase expectations for a rate hike rather than the cuts Trump was advocating.

Bitcoin’s exposure to Federal Reserve policy has been evident throughout the summer. Fed Chair Kevin Warsh’s hawkish remarks at Jackson Hole pushed Bitcoin down toward $77,000 while rate-hike expectations climbed to 57%. The episode showed how comments from policymakers can affect crypto prices even before an official decision is made.

The trend changed on September 3, when Fed Governor Christopher Waller delivered more neutral comments. Bitcoin subsequently gained 5%, while Bitcoin ETFs recorded approximately $730.8 million in net inflows.

Rate-hike expectations later moved back toward 50%, leaving investors with almost equal odds of a hike or a hold heading into the employment report, despite Trump’s continued pressure on the Fed through social media.

The ETF inflows are significant because institutional demand remained strong even as expectations for monetary policy shifted. Although August’s employment figures pushed sentiment in a more hawkish direction, they did not erase the recent improvement in Bitcoin ETF demand.

Trump Crypto News: How the September Fed Meeting Could Affect Bitcoin

The September 15–16 Fed meeting is now the next major policy event for financial markets. Until then, traders are likely to continue adjusting their expectations based on incoming economic data.

If strong employment figures keep rate-hike expectations elevated ahead of the meeting, tighter monetary conditions could remain a major headwind for Bitcoin and other risk-sensitive assets.

An unexpected rate cut, on the other hand, could provide additional fuel for Bitcoin’s rally, particularly given the recent improvement in institutional ETF inflows. However, the reason behind a potential cut would also matter.

If the Fed cuts rates because the economy is showing clear signs of weakness, cryptocurrencies could initially come under pressure. Historically, monetary easing linked to deteriorating economic conditions can produce a different market response than a cut introduced against an otherwise healthy economic backdrop.

For now, markets remain close to a 50-50 split between a rate hike and a hold. The August employment report has shifted sentiment toward the hawkish camp, but it has not determined the Fed’s final decision.

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