Bitcoin Jumps Above $100K After U.S. Jobs Report Falls Short of Expectations

Bitcoin (BTC) ended its three-day losing streak, climbing past $100,000 for the first time since February 4, following the release of January’s U.S. jobs data, which missed expectations.

The Bureau of Labor Statistics revealed that the U.S. economy added 143,000 jobs in January, below the expected 170,000 and down from 256,000 in December. However, the unemployment rate dropped to 4%, better than the forecasted 4.1%, aligning with December’s figure. Additionally, average hourly earnings grew by 0.5%, outperforming the expected 0.3% increase.

“Despite the relatively high wage inflation and a low unemployment rate, it’s unlikely that the Federal Reserve will ease rates anytime soon, though the markets are already factoring this in,” said Zach Pandl, head of research at Grayscale. “If stock markets remain stable, Bitcoin could potentially set new highs later this quarter.”

After the jobs report, the likelihood of a Federal Reserve rate cut at the March meeting dropped to 8% from 15%, according to CME FedWatch data.

Following a 100 basis point rate cut in the final months of 2024, investors initially expected more easing in 2025. However, recent strong economic and inflation reports have prompted the Fed to shift away from its dovish stance, and market participants have reduced expectations for further policy easing.