Bitcoin Climbs Above $100K After Disappointing U.S. Jobs Report for January
Bitcoin (BTC) broke its three-day losing streak, surpassing $100,000 for the first time since February 4, following a U.S. jobs report for January that fell short of expectations.
The Bureau of Labor Statistics announced that the U.S. economy added 143,000 jobs in January, below the forecasted 170,000 and a decline from 256,000 in December. However, the unemployment rate fell to 4%, better than the expected 4.1%, matching December’s rate. Additionally, average hourly earnings rose by 0.5%, exceeding the forecast of 0.3%.
“Despite the high wage inflation and a low unemployment rate, the Federal Reserve is unlikely to reduce rates in the near term, but the market has already accounted for that,” said Zach Pandl, head of research at Grayscale. “If the stock market remains stable, Bitcoin could push to new highs later this quarter.”
After the jobs data, the likelihood of the Federal Reserve cutting interest rates in its March meeting dropped to 8% from 15%, according to CME FedWatch data.
After cutting the federal funds rate by 100 basis points in the final months of 2024, many investors initially expected further cuts in 2025. However, stronger-than-anticipated economic and inflation reports have led the Fed to reconsider its dovish stance, and market expectations for further rate cuts have diminished.
