Bitcoin Tops $100K Again, But Weaker-Than-Expected Jobs Data Drags Crypto Down — Retail Confidence Dips

Bitcoin (BTC) rebounded from a three-day decline on Friday, briefly crossing the $100,000 mark after U.S. job growth in January came in weaker than expected.

The largest cryptocurrency by market cap surged past $100,000 for the first time since Feb. 4, according to CoinGecko data, after the Bureau of Labor Statistics reported that the U.S. economy added 143,000 jobs in January. 

That figure fell short of the 170,000 consensus estimate and marked a decline from December’s 256,000.

Despite the softer-than-expected payroll data, the unemployment rate unexpectedly fell to 4%, compared to forecasts of 4.1% and December’s 4.1%. 

Meanwhile, average hourly earnings rose 0.5% for the month, exceeding the 0.3% consensus.

Following the report, market expectations for a Federal Reserve rate cut in March fell to 8.5%, down from 15% prior to the release, according to CME FedWatch data.

However, Bitcoin’s price has since pared its gains, falling to around $99,500.

Bitcoin Sentiment and Message Volume on Feb.7 as of 9:35 a.m. ET | Source: Stocktwits

On Stocktwits, retail sentiment around Bitcoin remained ‘bearish’ amid ‘high’ levels of chatter. 

Some users pointed to the falling unemployment rate as a sign that the Federal Reserve may delay rate cuts, posing a potential headwind for Bitcoin.

Others noted that continued strength in wage growth could keep inflation concerns elevated, further complicating the Fed’s path forward.

Bitcoin, which more than doubled in value last year, has posted only modest gains of around 6% year-to-date.

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