Bitcoin has rebounded considerably after the latest US jobs data showed weaker-than-expected job growth in January 2025.
The crypto asset, which had been struggling below six figures in recent days, saw a strong rebound as traders responded to the labor market report.
Bitcoin Reclaims Lost Ground After Jobs Report
Bitcoin had been under pressure throughout the week, dropping from a peak of $101,785 on Tuesday, Feb. 4 to a low of $95,678 yesterday, Feb. 6.
The asset struggled to regain momentum as investors awaited key economic data from the U.S. Labor Department. However, once the jobs report was released, Bitcoin spiked nearly 3% within an hour, climbing back toward $99,700.
The price surge followed reports that the U.S. economy added 143,000 jobs in January, falling short of the 170,000 expected by economists.
The unemployment rate stood at 4.0%, and wage growth came in higher than the previous month. The report signaled that job expansion was slowing, possibly giving the Federal Reserve more reason to delay further rate cuts.
Why the Jobs Report Moved Bitcoin
Weaker job growth has a direct impact on market expectations for Federal Reserve policy. A cooling labor market increases the likelihood of rate cuts, which reduce borrowing costs and add liquidity to financial markets.
This environment tends to benefit risk assets like Bitcoin, which thrives in a lower interest rate setting. Financial markets now widely expect the Fed to begin cutting rates in June.
Although policymakers have already reduced rates by 100 basis points since September 2024, they have held off on further cuts while monitoring inflation and economic growth. The latest jobs data supports the case for continued rate reductions, making Bitcoin more attractive to investors seeking alternative stores of value.
Bitcoin Faces Resistance at $100K
Despite the sharp rebound, Bitcoin must maintain strong buying momentum to break through the psychological $100,000 barrier.
The asset had struggled to hold this level earlier in the week, facing heavy selling pressure. If bullish momentum continues, Bitcoin could reclaim six figures before the end of the day.
However, for the rally to be sustainable, Bitcoin must attract steady capital inflows, as buyers are likely to face intense resistance around the $100K mark.
A stronger push past $100,000 could trigger further buying interest, while rejection at this level might lead to another period of consolidation. Currently, Bitcoin changes hands at $99,612 at press time, up over 3% in the past 24 hours.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
