Bitcoin Falters Below $69,000 as Strong US Job Numbers Shake Markets
Wall Street opened with heightened volatility on Wednesday after the U.S. Labor Department reported a far‑better‑than‑expected payrolls report. Bitcoin attempted to recover the day’s losses but could not sustain a break above the $69,000 barrier, leaving the world’s leading cryptocurrency down more than 4% at the time of writing.
The data that sparked the move
The January non‑farm payrolls figure came in at 130,000 jobs, more than double the 55,000 analysts had forecast. The unemployment rate also slipped to 4.3%, edging under the 4.4% consensus. Such robust labor‑market performance generally signals that the Federal Reserve may have less urgency to lower rates, a scenario that traditionally weighs on risk assets, including crypto.
Immediate market reaction
- Bitcoin (BTC/USD) surged toward the $69,000 level in the first hour after the report but quickly retraced, extending its daily decline to just over 4%.
- Equities displayed mixed moves: the S&P 500 posted a modest 0.5% gain before giving back the advance, while the Nasdaq Composite fell 0.6% and later recovered.
- Gold briefly touched fresh February highs before retreating toward the $5,000 support zone.
What the Fed is likely to do
Trading‑floor analytics from the CME Group’s FedWatch tool show that the probability of a rate‑pause at the March FOMC meeting now exceeds 90%. Market participants have incorporated the “Kobeissi Letter” commentary that the strong jobs numbers reinforce expectations of a continued pause.
The next data point that could reshape expectations is the Consumer Price Index (CPI) release on Friday, which will provide further clues about the trajectory of inflation and the Fed’s monetary stance.
Technical outlook for Bitcoin
Analysts are watching several Fibonacci retracement zones as potential short‑term support:
- $64,600
- $62,500
- $59,800
If Bitcoin cannot reclaim the sub‑$68,000 area, these levels could become the next decision points. Some traders also note that the price action mirrors the early 2022 bear‑market pattern, suggesting the possibility of a gradual decline toward the low‑$50,000 region before any substantive bounce.
Key takeaways
| Takeaway | Detail |
|---|---|
| Jobs data | 130k jobs added in Jan; unemployment down to 4.3% |
| Fed outlook | Over 90% chance of a March rate‑pause; market eyes CPI for next cue |
| BTC price | Spike near $69k erased; down >4% on the day |
| Risk assets | Mixed equity moves; gold’s brief high undone |
| Technical watch | Fibonacci levels at $64.5k, $62.5k, $59.8k; $50k remains a longer‑term downside target |
The information presented reflects current market conditions and is not investment advice. Readers should conduct their own research before making any trading decisions.
Source: https://cointelegraph.com/news/bitcoin-reacts-to-major-us-jobs-data-beat-as-fed-rate-pause-odds-near-95?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
