Bitcoin Rises After U.S. Jobs Surprise; Odds of Near-Term Fed Cut Fall
Bitcoin moved higher after the U.S. January jobs report showed nonfarm payrolls increased by 130,000, well above forecasts. The stronger-than-expected payrolls signal a firmer labor market and prompted markets to sharply reduce the likelihood of a near-term Fed rate cut. Treasury yields ticked up as traders recalibrated policy expectations, and crypto markets reacted alongside equities and bond markets.
Why it matters: a smaller chance of policy easing keeps borrowing costs elevated and can limit liquidity that often fuels risk assets. For crypto traders, the report underscores growing sensitivity of Bitcoin to macroeconomic data and Fed communication. Investors will be watching upcoming inflation reads and Fed commentary for direction, so expect increased volatility as markets digest the new baseline for U.S. policy.