Citigroup has moved its forecast for the Federal Reserve’s first interest-rate cut to June 2027 from October 2026, after August US payroll growth exceeded expectations and earlier employment figures were revised higher. The bank now expects cuts in June, September and December 2027. US employers added 162,000 jobs in August, versus economists’ forecast of 53,000, while unemployment held at 4.1%, labor-force participation rose 0.2 percentage point and the monthly gain was the strongest since March. July payrolls were revised to a 21,000 increase from a previously reported 23,000 decline, and June’s figure was raised by 11,000. Citi economists Andrew Hollenhorst and Veronica Clark said the data indicated broadly stable employment and would put greater focus on inflation. The stronger report initially pushed Bitcoin below $80,000 and lifted the implied probability of a 25-basis-point Fed hike at the Sept. 15-16 meeting to 61% from 52%, according to Reuters. The Fed subsequently raised its benchmark rate by 25 basis points on Sept. 16 to a 3.75%-4% target range, its first hike since July 2023, while 16 of 18 officials projected at least one additional increase before the end of 2026. Higher rates can pressure crypto by making interest-bearing government debt more attractive, but Bitcoin later recovered above $86,000 as ETF demand returned, Treasury yields eased and short covering (buying back borrowed assets) supported the move. US spot Bitcoin ETFs recorded $433 million of net inflows on Sept. 18. Market researchers said the rebound was helped by several factors rather than proving Bitcoin is insulated from monetary policy.