Why Did the US Jobs Data Trigger a $100K Bitcoin Price Rally?

Bitcoin (BTC) just broke a three-day losing streak, and it’s got everyone talking.

The world’s largest cryptocurrency surged past $100,000 for the first time since Feb. 4, fueled by weaker-than-expected U.S. job data. A fresh report from the Bureau of Labor Statistics showed the economy added just 143,000 jobs in January – far below the forecast of 170,000 and a steep drop from December’s 256,000.

Could this be the push Bitcoin needs to climb even higher? Let’s break down what’s happening.

Job Data Sparks Bitcoin Rally

Despite the slowdown in job growth, the unemployment rate dipped to 4%, better than the expected 4.1% and the same as December. Average hourly earnings rose by 0.5%, exceeding the projected 0.3%, signaling continued wage inflation.

Zach Pandl, Head of Research at Grayscale, noted that strong wage growth and low unemployment suggest the Federal Reserve is unlikely to cut interest rates soon. However, he added,

“As long as equity markets stay stable, Bitcoin could reach new highs later this quarter,” he added. 

Following the report, the likelihood of a Fed rate cut in March dropped from 15% to just 8%, according to CME FedWatch data.

Crypto Responds

The Fed reduced rates by 100 basis points in late 2024, and investors initially expected similar cuts in 2025. However, strong economic and inflation data have forced the Fed to adjust its stance. Now, traders anticipate only two rate cuts this year, likely in the second half.

Weaker job data often fuels speculation that the Fed may lower rates, which can benefit Bitcoin. If the labor market stays strong despite high rates, the Fed may hold steady – but the latest data suggests a more favorable outlook for crypto.

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BTC and ETH Options Expiry – What to Expect?

Investors are watching closely to see how this data impacts Bitcoin, which has been volatile after its recent pullback from all-time highs. Despite the uncertainty, market sentiment remains positive.

Top crypto analyst Mister Crypto called the jobs report “BULLISH FOR CRYPTO.” While Bitcoin rallied in response, today’s BTC and ETH options expiry could bring more volatility.

While the Fed holds its cards close, Bitcoin traders are already placing their bets on what comes next.