Bitcoin Retests $100K Following Mixed US Job Report

Bitcoin (BTC) surged above $100,000 before a flash correction as low sentiments grip traders. This came on the heels of a slowing job report in the United States, setting the tone for cooler Fed policies. Risky assets like Bitcoin marked an hourly rebound, coupled with analysts projecting a stronger recovery. Stocks also traded in the same direction after US trade rifts and tension stalled growth. US Added 144K Jobs In January The Labor Department’s Job Report showed that nonfarm payroll increased by 143,000 last month despite the California wildfires and Donald Trump’s policy concerns. This fell short of figures projected by economics, sparking mixed reactions from various markets. Several analysts predicted last month’s numbers to come in above 170,000. Similarly, the Labor Department noted that the unemployment rate dropped to 4% from 4.1%, marking an eight-month low. “ The unemployment rate edged down to 4.0 percent in January, after accounting for the annual adjustments to the population controls. The number of unemployed people, at 6.8 million , changed little over the month. (See table A-1. See the note at the end of this news release.” This led to a 3% spike in hourly trading data as Bitcoin price broke the $100k resistance. Due to the upcoming Federal Reserve’s policy decision, a weaker job respect directly impacts risky assets. Cooler job data increases the likelihood of policy rate cuts by the Feds because the labor market is not as resilient for tighter measures. Lower interest rates are key for an upward march in Bitcoin and altcoin prices. This is due to increased liquidity and borrowing power as funds pour into these assets, while tighter rates will lead to outflows from the market. Last year, BTC prices spiked after the United States lowered interest rates. Low Sentiments Wipe Out Flash Gains The 3% surge recorded in BTC price was wiped off within hours as trading activity picked up. This week, Bitcoin has struggled to replicate its fine form last year, surging to its all-time high. At the time of writing, the asset’s price stands at $97,604, trading sideways today and a 6% decline in the last seven days. Low sentiments continue as whales’ volume plunged alongside asset transfers to centralized exchanges. Conversely, pro-BTC commentators say a long-term uptick is on the cards on the back of a positive U.S. regulatory landscape.

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