Bitcoin’s price has experienced a notable increase, fueled by the latest US labor market data that suggests a slowing economy. According to the U.S. Labor Department, nonfarm payrolls for January increased by 143,000, a drop from December’s 256,000, and below Wall Street’s forecast of 169,000. The unemployment rate also dipped from 4.1% to 4%, signaling fewer people out of work.
This slowdown in job growth has sparked increased expectations that the Federal Reserve could implement a rate cut. Lower interest rates typically make riskier investments like Bitcoin more attractive. As a result, Bitcoin surged to $98,497 shortly after the job data was released, up from a 24-hour low of $95,707.35, before retracing slightly to $97,949.
Market Reaction and Future Outlook
Bitcoin Futures Open Interest spiked following the release of the job data, indicating rising interest from investors. Many analysts are optimistic that this could signal the beginning of a bullish trend in the cryptocurrency market.
However, despite these signs of optimism, the CME FedWatch Tool shows only a 10.5% chance of a 25 basis point rate cut during the next Federal Open Market Committee (FOMC) meeting in March. Federal Reserve Chair Jerome Powell previously mentioned that any rate cuts would depend on evidence of inflation moving sustainably toward the central bank’s 2% target.
Even with uncertainty about immediate rate cuts, some crypto experts, like Mister Crypto, believe the weakening job market is “bullish for crypto,” as it could signal more favorable conditions for Bitcoin.
Short-Term Volatility
While the long-term outlook remains positive for Bitcoin, short-term volatility could still impact the market, especially with large Bitcoin and Ethereum options contracts set to expire, which may lead to potential price fluctuations.
Related topics:
Bridging the Data Gap: Why DeAI Needs More Diverse Datasets
Insider Profits Soar as Trump Meme Coin Leads to $2B in Losses for Investors
Central African Republic’s Memecoin Raises Red Flags Amid Deepfake and Scam Allegations
