Bitcoin Surges Above $100K as U.S. Job Data Falls Short, Boosts Crypto Outlook
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In a latest development, Bitcoin (BTC) ended a three-day decline after U.S. job growth for January fell short of expectations. Notably, the cryptocurrency rose above $100,000 for the first time since Feb. 4, following a report from the Bureau of Labor Statistics showing the economy added 143,000 jobs in January, below the forecast of 170,000 and down from 256,000 in December.
Unemployment Rate Drops to 4%, Wage Growth Surpasses Expectations
The unemployment rate fell to 4%, better than the expected 4.1%, and matched December’s rate. Additionally, average hourly earnings increased by 0.5%, exceeding the expected 0.3%.
Grayscale’s Head of Research Zach Pandl noted that the high wage inflation and low unemployment suggests that the Federal Reserve isn’t likely to cut rates soon, but the market already knows that. “As long as equity markets stay stable, Bitcoin could reach new highs later this quarter,” he added.
The likelihood of the Federal Reserve lowering interest rates at its March meeting dropped to 8% from 15% after the report, according to CME FedWatch data.
The Fed reduced rates by 100 basis points in the last four months of 2024, and investors had expected similar cuts in 2025. However, recent strong economic and inflation data has led the Fed to quickly shift away from its more relaxed stance, with traders now expecting no further rate cuts. The market is only anticipating two rate cuts this year, with the first likely after the first half of the year.
Implications For Bitcoin
The weaker-than-expected job data has sparked speculation about a possible Bitcoin price surge. Cooling job data typically gives the central bank room to lower interest rates. If the labor market remains strong despite high rates, the Fed may keep rates steady. However, the latest data suggests a positive outlook for Bitcoin’s price.
Investors are closely watching how this data impacts Bitcoin, which has seen volatile trading and a significant drop from its all-time high. Experts remain optimistic about Bitcoin and the broader crypto market. Besides, recently, top crypto analyst Mister Crypto praised the U.S. job data, calling it “BULLISH FOR CRYPTO.”
While Bitcoin surged following the U.S. job data release, the BTC and ETH options expiry today could bring volatility to the crypto market.
