Bitcoin ended a three-day decline as it strengthened following new U.S. labor market data. A slowdown in job growth combined with rising wages is creating favorable conditions for the crypto market.
Decline in Unemployment and Wage Growth
The U.S. unemployment rate fell to 4% in January, better than the expected 4.1%. Additionally, average hourly earnings increased by 0.5%, exceeding the anticipated 0.3%.
Federal Reserve Policies
Grayscale's Head of Research Zach Pandl noted that high wage inflation and low unemployment make it unlikely that the Federal Reserve will cut rates soon. However, the market has already factored in this expectation.
Impact on Bitcoin and Crypto Market
Weaker-than-expected job data has sparked speculation that Bitcoin may continue to rise. Experts believe that if equity markets remain stable, Bitcoin could reach new highs in the coming months. Investors are closely watching how this data will affect Bitcoin's volatile trading patterns.
The latest U.S. labor market data positively impacted Bitcoin, bolstering analyst confidence in the cryptocurrency's growth. However, upcoming financial events could introduce volatility into the crypto market.
