Bitcoin (BTC) Ends Three-Day Decline as US Job Growth Falls Short of Expectations

The unemployment rate fell to 4%, better than the expected 4.1%, and matched December's rate. Additionally, average hourly earnings increased by 0.5%, exceeding the expected 0.3%.

Bitcoin (BTC) price ended a three-day decline on Feb. 10 after weaker-than-expected U.S. job growth data for January.

Bitcoin price quickly recovered from a three-day decline after weaker-than-expected U.S. job growth data for January showed the economy added 143,000 jobs last month. The unemployment rate fell to 4%, better than the expected 4.1%, and matched December’s rate.

The report also showed that average hourly earnings increased by 0.5%, exceeding the expected 0.3%.

The weaker-than-expected job growth data sparked speculation about a possible Bitcoin price surge. Cooling job data typically gives the central bank more room to lower interest rates. If the labor market remains strong despite high rates, the Federal Reserve could keep rates steady, which would be a positive sign for Bitcoin’s price.

The unemployment rate and wage growth both came in better than expected, suggesting that the Federal Reserve isn’t likely to cut rates soon, but the market already knows that, Grayscale’s head of research Zach Pandl said. “As long as equity markets stay stable, Bitcoin could reach new highs later this quarter,” he added.

The likelihood of the Federal Reserve cutting interest rates at its March meeting dropped to 8% from 15% after the report, according to CME FedWatch data. The Fed slashed rates by 100 basis points in the last four months of 2024, and investors had anticipated similar cuts in 2025. However, recent strong economic and inflation data has prompted the central bank to quickly shift away from its more relaxed stance, with traders now expecting no further rate cuts. The market is only anticipating two rate cuts this year, with the first likely after the first half of the year.

Bitcoin price has been volatile this year, showing a significant drop from its all-investors are keeping an eye on how this data impacts Bitcoin, which has seen volatile trading and a major drop from its all-time high. However, experts remain optimistic about Bitcoin and the broader crypto market. Notably, top crypto analyst Mister Crypto praised the U.S. job data, calling it “BULLISH FOR CRYPTO.”

Meanwhile, BTC and ETH options are set to expire today, which could bring volatility to the crypto market.