Bitcoin Surges Above $100K After U.S. Job Growth Misses Expectations
Bitcoin (BTC) reversed its three-day decline, rising above $100,000 for the first time since February 4, following the release of the U.S. January jobs report, which fell short of expectations.
The Bureau of Labor Statistics reported that the U.S. economy added 143,000 jobs in January, well below the forecasted 170,000 and down from 256,000 in December. Despite this, the unemployment rate dropped to 4%, beating expectations of 4.1%, and matching December’s rate. Additionally, average hourly earnings grew by 0.5%, surpassing the anticipated 0.3% increase.
“While relatively high wage inflation and a low unemployment rate suggest the Federal Reserve isn’t likely to cut rates anytime soon, markets are already aware of this,” said Zach Pandl, Grayscale’s head of research. “As long as the equity markets remain stable, Bitcoin could reach new highs later this quarter.”
Following the report, the likelihood of the Federal Reserve lowering its benchmark interest rate at the March meeting fell to 8% from 15%, according to CME FedWatch data.
After cutting the federal funds rate by 100 basis points in the last quarter of 2024, investors initially expected similar actions in 2025. However, a string of strong economic and inflation data since then has caused the Fed to quickly adjust its stance, and traders have significantly reduced expectations for any further rate cuts.
