Bitcoin Price Responds To US Job Data

On February 7, 2025, the U.S. Bureau of Labor Statistics reported that the economy added 143,000 jobs in January, falling short of the anticipated 170,000 and marking a decline from December’s 256,000. Despite this, the unemployment rate decreased to 4%, slightly below the expected 4.1%. Average hourly earnings also surpassed projections, rising by 0.5% compared to the forecasted 0.3%.

In response to this mixed economic data, Bitcoin (BTC) experienced notable price movements. The cryptocurrency initially dipped to an intraday low of $95,988 but quickly rebounded, surpassing the $100,000 mark for the first time since February 4. As of 2:03 PM CST, Bitcoin is trading at approximately $96,731, reflecting a 0.76% increase from the previous close. The day’s trading range has seen a high of $100,186 and a low of $95,988.

Analysts suggest that the weaker-than-expected job growth, coupled with a declining unemployment rate and rising wages, presents a complex scenario for the Federal Reserve’s monetary policy decisions. Zach Pandl, Grayscale’s head of research, noted, “Relatively high wage inflation and a low unemployment rate mean that the Federal Reserve isn’t likely to cut rates anytime soon, but markets already know that.” He added, “As long as equity markets remain broadly stable, Bitcoin could make new highs later this quarter.”

The cryptocurrency market’s sensitivity to macroeconomic indicators is evident in Bitcoin’s recent price action. The unexpected slowdown in job growth has led investors to reassess their expectations regarding the Federal Reserve’s interest rate policies, which, in turn, influences Bitcoin’s valuation. As the economic landscape continues to evolve, market participants will closely monitor upcoming data releases and policy decisions to gauge their potential impact on both traditional and digital asset markets.