Bitcoin Taps $100,000 But Fails To Hold Amid Mixed US Jobs Report

Ash Tiwari

4 months ago

3 mins read

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The US Bureau of Labour Statistics released the January 2025 employment data earlier today, briefly pushing Bitcoin (BTC) to $100,000 before it lost all its gains and tumbled back to the $98,000 price level.

Bitcoin Rises And Falls Amid Mixed Employment Data

Bitcoin spiked from approximately $97,200 to a high of $100,110 after the US reported lower-than-expected job growth for January. According to the data, the US added 143,000 jobs last month, falling short of the projected 170,000. For comparison, December 2024 saw a job increase of 256,000.

However, Bitcoin’s rally was short-lived, as it quickly erased nearly all its gains, sliding back to $97,957. The following chart illustrates the brief BTC price surge before it retraced to previous levels.

US jobs data — BTC surged above $100,000 before losing its gains and sliding to $97,957 | Source: BTCUSDT on TradingView.com

In addition to the lower-than-expected job growth, the unemployment rate declined from 4.1% to 4%, highlighting the resilience of the US labor market despite elevated interest rates throughout most of 2024.

Following this strong labor market data, the CME FedWatch Tool now assigns only an 8.5% probability of the US Federal Reserve (Fed) cutting interest rates at its next meeting on March 19. Notably, this probability stood at 15% before the employment report was released.

A lower likelihood of rate cuts suggests that interest rates will remain higher for longer, dampening Bitcoin bulls’ hopes for multiple reductions in 2025, that could inject fresh liquidity into the market and potentially benefit risk-on assets like BTC.

It’s worth noting that from September to December 2024, the Fed slashed interest rates by a total of 100 basis points. However, given the continued strength of the labor market and low unemployment, the Fed may adopt a more cautious stance, choosing to wait for potential economic warning signs before implementing further cuts.

Global capital markets commentator, The Kobeissi Letter noted that the current US unemployment rate is the lowest since May 2024. They added that the “Fed pause is here to stay.”

BTC Steady Despite Macroeconomic Headwinds

Bitcoin continues to trade within a tight range of $92,000 to $106,000, keeping both bulls and bears uncertain about its next move. Despite this, the flagship cryptocurrency has shown remarkable resilience in the face of several macroeconomic challenges that, under normal circumstances, might have triggered a significant sell-off in the crypto market.

For instance, BTC remained unfazed by the stock market downturn triggered by the release of China’s AI-powered language model, DeepSeek. Similarly, the digital asset held strong despite renewed trade tensions between the US and China, following President Donald Trump’s imposition of 10% tariffs on the Asian economic powerhouse, which led to retaliatory measures.

However, concerns persist regarding the recent slump in Bitcoin network activity, with some analysts questioning whether BTC is currently overvalued. At press time, BTC trades at $98,015, up 1% in the past 24 hours.

Featured image from Unsplash, Charts from TradingView.com

Ash Tiwari

Ash is a dedicated crypto researcher and blockchain enthusiast with a passion for diving deep into the evolving world of decentralized technologies. With a background in writing and a natural curiosity for how digital assets are shaping the future, he has immersed himself in various sectors of the cryptocurrency space, including decentralized finance (DeFi), NFTs, and liquidity mining. His journey into crypto started with a desire to fully understand the technology behind it, leading him to explore and engage with these systems firsthand.

Ash’s approach to DeFi goes beyond surface-level research as he actively participates in decentralized protocols, testing their functionality to gain a deeper understanding of how they operate. From experimenting with staking mechanisms to exploring liquidity mining strategies, he is hands-on in his exploration, which allows him to provide practical, real-world insights that go far beyond theoretical knowledge. This immersive experience has helped him develop a comprehensive grasp of smart contracts, token governance, and the broader implications of decentralized platforms on the future of finance.

In the NFT space, Ash’s interest is driven by the technology’s potential to reshape ownership and creativity in the digital age. He has explored various NFT projects, gaining insights into how these digital assets function within different ecosystems. His focus is on understanding the evolving relationship between creators and communities, as well as the innovative uses of blockchain technology to establish authenticity and provenance in the digital world. Ash’s research in this area often touches on the intersection of culture, technology, and community-driven projects.

A key area of his expertise lies in liquidity mining, where he has engaged with various decentralized platforms to understand how liquidity provision contributes to the functionality and security of DeFi ecosystems. Ash’s hands-on involvement has allowed him to analyze the risks, rewards, and broader implications of liquidity pools, giving him a well-rounded perspective on this integral part of DeFi. His understanding of risk management and protocol design allows him to provide insights into how these systems can be navigated effectively, with an emphasis on both opportunity and caution.

When it comes to communicating these complex topics, Ash’s writing is grounded in clarity and depth. He excels at breaking down intricate blockchain concepts into easily digestible information for a wide audience. Whether explaining the workings of decentralized exchanges or outlining the future potential of blockchain technology, Ash ensures that his content is accessible to both those new to the space and experienced participants looking for deeper insights.

Beyond DeFi and NFTs, Ash explores a wide array of emerging blockchain applications. His research spans areas like cross-chain technologies, decentralized governance, and blockchain’s potential to integrate with traditional finance. He is continuously learning and adapting to the latest developments, ensuring that his insights are both timely and relevant. His interest extends to how these technologies are creating new possibilities for decentralization, transparency, and trust in a variety of industries.

Ash’s commitment to engaging with the crypto space firsthand gives him a unique perspective that goes beyond what can be learned from research alone. His practical involvement allows him to stay ahead of the curve, offering readers and enthusiasts a clear and comprehensive understanding of the rapidly evolving world of blockchain. Whether delving into the technical mechanics of DeFi or exploring the cultural impact of NFTs, Ash’s approach is always rooted in curiosity, research, and a desire to make this technology accessible to all.

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