Bitcoin slips, hovering around $67k, as traders parse blowout U.S. jobs data

Investing.com-- Bitcoin remained on the back foot on Wednesday, hovering around $67,000 after the new U.S. jobs data for January came in stronger than expected. 

The world’s biggest cryptocurrency last traded 2% lower at $67,415.7 by 18:00 ET (23:00 GMT).

Bitcoin had recently rebounded from last week’s slump near the $60,000 level, but struggled to sustain gains above $70,000, reflecting ongoing volatility and fragile sentiment in the crypto market.

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January jobs report stronger than anticipated

The delayed U.S. employment report came in much stronger than expected, easing some concerns about the health of the labor market.

Nonfarm payrolls rose by 130,000 in January, well above the 66,000 consensus forecast. The gain also topped December’s revised increase of 48,000, according to data released Wednesday by the Bureau of Labor Statistics.

The unemployment rate edged down to 4.3%, compared with expectations for it to hold steady at 4.4%.

The report, pushed back nearly a week due to the partial government shutdown that ended Feb. 3, pointed to a labor market that remains in a low-growth phase, with limited evidence of broad-based layoffs.

The figures are likely to reinforce expectations that the Federal Reserve will keep interest rates unchanged in the near term. Futures markets increased bets on a pause at the March meeting, while still leaning toward a rate cut in June, based on CME Group’s FedWatch tool.

Beyond jobs data, traders also await the U.S. Consumer Price Index (CPI) release on Friday, which could further shape expectations for inflation and influence prospects for Federal Reserve interest rate moves.

Typically, expectations of easier Fed policy and lower interest rates buoy risk assets, including Bitcoin, by reducing the opportunity cost of holding non-yielding assets.

However, this cycle has differed, with Bitcoin’s price remaining subdued despite Fed cuts. Analysts pointed to reduced liquidity, weak institutional, and fading speculative interest as factors weighing on the digital currency.