Bitcoin Breaks $100K, Then Retreats Amid Mixed Jobs Report

Bitcoin surged above the $100,000 mark on Friday, following a mixed U.S. jobs report that sparked a rebound in risk assets. The cryptocurrency briefly broke through the psychological resistance level before experiencing a flash correction, as low sentiments gripped traders.

The U.S. Labor Department reported that nonfarm payrolls increased by 143,000 in January, falling short of economists' projections of around 170,000. The unemployment rate dropped to 4% from 4.1%, marking an eight-month low. Despite the California wildfires and policy concerns under the Trump administration, the job market showed signs of resilience.

The mixed jobs report led to a 3% spike in hourly trading data, pushing Bitcoin's price above $100,000. However, the gains were short-lived, as the cryptocurrency's price retreated to around $97,604 at the time of writing, representing a 6% decline over the past seven days.

Analysts attributed the flash correction to low sentiments, as whales' trading volume and asset transfers to centralized exchanges decreased. Despite the recent volatility, pro-Bitcoin commentators remain optimistic about the cryptocurrency's long-term prospects, citing a positive U.S. regulatory landscape.

The upcoming Federal Reserve policy decision is expected to influence Bitcoin's price trajectory. A weaker job report increases the likelihood of policy rate cuts, which could boost liquidity and borrowing power, driving funds into cryptocurrencies. Last year, Bitcoin's price spiked following the United States' interest rate cuts.