Bitcoin Taps $100,000 But Fails To Hold Amid Mixed US Jobs Report
U.S. Bureau of Labor Statistics issued Earlier in January 2025, employment data from earlier today briefly increased Bitcoin (BTC) to $100,000, before losing all gains and falling to the $98,000 price level.
Bitcoin rises and falls in mixed employment data
Bitcoin rose from about $97,200 to a high price of $100,110 after the U.S. reported lower-than-expected job growth in January. According to data, the U.S. added 143,000 jobs last month, with an estimated 170,000. For comparison, work increased by 256,000 in December 2024.
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However, Bitcoin’s rally was short-lived as it quickly eliminated almost all of its earnings, falling back to $97,957. The following chart illustrates the brief price increase before the BTC price rises.
In addition to exceeding expectations of job growth, the unemployment rate fell from 4.1% to 4%, although interest rates have increased the resilience of the U.S. labor market for much of 2024.
Following this powerful labor market data, the CME FedWatch tool now distribute At its next meeting on March 19, the U.S. Federal Reserve (Feder) has a chance of lowering interest rates by 8.5%. In particular, this probability is 15% before the employment report is released.
Lower chances of lowering interest rates suggest that longer rates will remain higher, which will undermine the Bitcoin Bull’s hopes for multiple drops in 2025 that could inject fresh liquidity into the market and potentially allow risky assets such as BTC Benefit.
It is worth noting that from September 2024 to December 1224, the Federal Reserve cut interest rates by 100 basis points. But given the continued strength of the labor market and low unemployment, the Fed may take a more cautious stance, choosing to wait for potential economic warning signs before implementing further cuts.
Global Capital Markets Commentator, Kobeissi Letter Famous Their current unemployment rate is the lowest since May 2024. They added that “the Fed’s pause will remain here.”
Despite macroeconomic headwinds, BTC is stable
Bitcoin continues to trade in the tight range of $92,000 to $106,000, leaving the bulls and bears uncertain about what to do next. Nevertheless, in the face of several macroeconomic challenges, flagship cryptocurrencies could trigger a major sell-off in the cryptocurrency market under normal circumstances.
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For example, BTC still exists No doubt The decline in the stock market was triggered by the DeepSeek, a language model driven by China’s AI. Similarly, digital asset holdings Strong Trade tensions between the United States and China have increased, leading to retaliatory measures despite President Donald Trump imposed 10% tariffs on Asian economic powers.
However, there are some analyst concerns about the recent downturn in Bitcoin network activity. ask Is BTC currently overestimated? At press time, BTC was trading at $98,015, up 1% in the past 24 hours.
Featured images from Unsplash, charts from TradingView.com
