US Jobs Data Removes Critical Downside Risk for Bitcoin and Crypto Markets
US jobs data showing slower hiring but stable employment eased recession fears, stabilizing Bitcoin above $90,000.Summary
The latest US labor market data, revealing a slower pace of job creation (50,000 jobs added in December) alongside a falling unemployment rate (4.4%) and firm wage growth (3.8%), removed a significant downside risk for Bitcoin and crypto markets. Markets interpreted this as a cooling, rather than collapsing, economy, thus avoiding the risk-off selling associated with either runaway inflation or a sudden growth shock. This stability kept Bitcoin trading between $89,000 and $92,000, preventing a drop toward the low $80,000s.
However, this report did not introduce a new catalyst for a rapid ascent toward $100,000. While recession fears subsided, the 3.8% wage growth suggests sticky services inflation, allowing the Federal Reserve to maintain current interest rates longer, which limits the potential for a rapid liquidity-driven surge.
According to Matt Mena of 21shares, if unemployment remains steady and inflation cools, Bitcoin could target $100,000 and potentially $110,000. Nevertheless, the near-term path back to six figures now hinges more on sustained inflows into spot Bitcoin ETFs and clearer signals from the Fed regarding rate cuts, rather than the labor data itself.
(Source：BeInCrypto)