Bitcoin Surges Past $100K Following U.S. Job Numbers Miss
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Bitcoin Surges Past $100K Following U.S. Job Numbers Miss

Bitcoin broke through the $100,000 mark as U.S. job growth fell short of expectations, leading to a drop in the unemployment rate.

Key Points:

  • U.S. job growth for January was weaker than anticipated, coming in at 143,000 jobs added.
  • Bitcoin saw a price increase following the announcement, surpassing $100,000 for the first time since February 4.

Bitcoin (BTC) bounced back after three consecutive days of decline, responding to the latest employment figures from the Bureau of Labor Statistics which indicated a shortfall against the forecast of 170,000 jobs and a drop from December’s 256,000 jobs.

However, the unemployment rate decreased to 4%, below the estimated 4.1%, and average hourly earnings rose significantly, compared to expectations.

“Relatively high wage inflation and a low unemployment rate indicate that the Federal Reserve is unlikely to reduce rates anytime soon, but the markets are already aware of that,” stated Zach Pandl, Head of Research at Grayscale. “Provided that equity markets remain stable, Bitcoin could reach new heights by the end of the quarter.”

In light of this report, the anticipated probability of a rate cut in the Federal Reserve’s March meeting lowered from 15% to 8%. The Fed had previously decreased the rate by 100 basis points during the last four months of 2024, but increasing economic and inflation indicators led to a shift away from dovish proposals.

Updates:

  • Update (Feb. 7, 13:59 UTC): Adds Bitcoin price reaction in headline and early paragraphs, alongside Fed rate cut probabilities in the fourth paragraph.
  • Update (Feb. 7, 14:23 UTC): Bitcoin price surpasses $100,000.
  • Update (Feb. 7, 15:08 UTC): Incorporates quote from Grayscale’s Head of Research.
Next article

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