Weak US Payrolls Trigger Short Squeeze as Bitcoin and Gold Rally on Rate Pivot Hopes
US nonfarm payrolls added just 29,000 jobs in September, missing expectations of 90,000 and pushing unemployment to 4.2%. The weak report sparked a quick rally in Bitcoin and gold, wiping out over $27 million in short positions within an hour. Traders are pricing in future central bank easing as high interest rates drag on the broader economy.
A massive miss in the US labor market sent a sharp jolt through macro assets as nonfarm payrolls added just 29,000 jobs against 90,000 expected. The sudden weakness pushed unemployment to 4.2%, immediately signaling to markets that economic friction is catching up with high borrowing costs.
Bitcoin reacted instantly, climbing from $86,450 to over $87,230 alongside a parallel spike in gold. The abrupt upward move caught bearish leverage off guard, triggering over $27 million in short liquidations in under an hour as traders scrambled to cover underwater positions.
This macro reaction reflects growing market confidence that persistent employment weakness will force central bankers to rethink restrictive monetary policy. While elevated bond yields present an immediate hurdle, capital is moving into non-yielding hedges as risk asset demand rebounds on expectations of liquidity support.