Bitcoin Surges Above $100K as U.S. Job Data Falls Short, Boosts Crypto Outlook
In the latest development, Bitcoin (BTC) ended a three-day decline in job growth in January in the U.S.. It is worth noting that cryptocurrencies have risen by more than $100,000 for the first time since February 4 Report The economy added 143,000 jobs in January, down from the 256,000 forecast in December, according to the Bureau of Labor Statistics.
Unemployment rate drops to 4%, wage growth exceeds expectations
The unemployment rate fell to 4%, higher than expected 4.1%, and matched the December interest rate. In addition, average hourly income increased by 0.5%, surpassing the expected 0.3%.
High wage inflation and low unemployment rate suggest that the Fed is unlikely to lower interest rates anytime soon, but the market already knows that. He added: “As long as the stock market remains stable, Bitcoin can reach new highs later in the quarter.”
The likelihood of the Federal Reserve lowering interest rates at its March meeting dropped to 8% from 15% after reporting, according to CME FedWatch data.
The Fed lowered interest rates by 100 basis points in the last four months of 2024, and investors expect similar cuts in 2025. However, recent strong economic and inflation data have led the Fed to quickly get rid of a more relaxed stance without further reductions. The market is only expected to see two lowers this year, and the first one after the first half of this year is likely to be lower.
Impact on Bitcoin
Work data that exceeded expectations sparked speculation about possible bitcoin price increases. Cooling work data usually provides central banks with rooms that reduce interest rates. If the labor market interest rates are high, the Fed may remain stable. However, the latest data suggests a positive outlook for Bitcoin prices.
Investors are paying close attention to how these data affect Bitcoin, which fluctuates its trading magnitude and has declined from its all-time high. Experts remain optimistic about Bitcoin and the wider crypto market. Additionally, recently, top crypto analyst Mr. Crypto praised U.S. working data, calling it a “bullishness on cryptocurrencies.”
Although Bitcoin soared after the release of U.S. work data, today’s expiration of BTC and ETH options could bring volatility to the crypto market.
