Bitcoin has made a strong comeback following the latest US jobs report, which revealed weaker-than-expected job growth in January 2025. The leading cryptocurrency, which had been struggling to maintain six-figure levels, saw a rapid rebound as traders reacted to the labor market data.
Bitcoin Regains Momentum After Jobs Report
After a turbulent week, Bitcoin fell from its peak of $101,785 on Feb. 4 to a low of $95,678 on Feb. 6. Investors remained cautious while awaiting key economic data from the U.S. Labor Department. However, once the jobs report was released, Bitcoin surged nearly 3% within an hour, climbing back toward $99,700.
The rebound came after data showed that the U.S. economy added 143,000 jobs in January, significantly below the 170,000 jobs forecasted by economists. The unemployment rate remained at 4.0%, while wage growth surpassed the previous month’s figures. The report signaled a slowing labor market, which could influence the Federal Reserve’s decision on interest rates.
How the Jobs Report Impacted Bitcoin’s Price
Weaker job growth has a direct effect on market expectations for Federal Reserve monetary policy. A slowing labor market increases the likelihood of interest rate cuts, which reduce borrowing costs and inject liquidity into financial markets.
This environment typically benefits risk assets like Bitcoin, which thrives in a low-interest-rate climate. Investors now widely anticipate that the Federal Reserve will begin rate cuts by June 2025.
Since September 2024, the Fed has already cut rates by 100 basis points, but policymakers have remained cautious while monitoring inflation and economic growth. The latest jobs report strengthens the case for continued rate reductions, making Bitcoin more attractive as a store of value.
Bitcoin Eyes Key $100K Resistance Level
Despite its impressive rebound, Bitcoin must sustain strong buying pressure to break past the critical $100,000 resistance level. The asset previously struggled to hold this threshold earlier in the week due to heavy selling pressure.
If bullish momentum continues, Bitcoin could surpass $100K before the end of the day. However, to sustain the rally, capital inflows must remain strong, as sellers are expected to defend the $100K mark aggressively.
A confirmed breakout above $100,000 could fuel further buying interest, while rejection at this level might trigger another period of consolidation. At press time, Bitcoin is trading at $99,612, up over 3% in the past 24 hours.
Disclaimer:
This article is for informational purposes only and should not be considered financial advice. The views expressed here are those of the author and do not necessarily reflect the opinion of The Crypto Basic. Readers should conduct thorough research before making investment decisions. The Crypto Basic is not responsible for any financial losses.
