Bitcoin Surges Past $100K on Weak U.S. Jobs Data

Bitcoin (BTC) surged above the $100,000 mark on Friday, February 3, following the release of U.S. job data for January. The cryptocurrency ended a three-day decline as the U.S. economy added 143,000 jobs, falling short of the expected 170,000 and down from 256,000 in December, according to a report from the Bureau of Labor Statistics.

The unemployment rate dropped to 4%, matching December's rate and beating the expected 4.1%. Average hourly earnings increased by 0.5%, surpassing the expected 0.3%. Zach Pandl, Grayscale's Head of Research, noted that high wage inflation and low unemployment suggest the Federal Reserve is unlikely to cut rates soon. He added that as long as equity markets remain stable, Bitcoin could reach new highs later this quarter.

The likelihood of the Federal Reserve lowering interest rates at its March meeting dropped to 8% from 15% after the report, according to CME FedWatch data. The Fed reduced rates by 100 basis points in the last four months of 2024, but recent strong economic and inflation data has led the central bank to shift away from its more relaxed stance. Traders now expect no further rate cuts, with the market anticipating only two rate cuts this year, likely after the first half of the year.

The weaker-than-expected job data has sparked speculation about a possible Bitcoin price surge. Cooling job data typically gives the central bank room to lower interest rates, which could boost Bitcoin's price. However, the latest data suggests a positive outlook for Bitcoin's price, with investors closely watching how this data impacts the cryptocurrency. Top crypto analyst Mister Crypto praised the U.S. job data, calling it "BULLISH FOR CRYPTO."

While Bitcoin surged following the U.S. job data release, the BTC and ETH options expiry on Friday could bring volatility to the crypto market. Experts remain optimistic about Bitcoin and the broader crypto market, despite recent volatility and a significant drop from its all-time high.