US Jobs Data Gives Critical Signal For Bitcoin Price Recovery

Bitcoin held above the $90,000 level on Friday after the latest US labor market data showed slower hiring but no sign of a sharp economic downturn. 

The report removed one key downside risk for crypto markets. However, it did not yet create the conditions for a fast move back toward $100,000.

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Labor Data Eases US Recession Risk

The US economy added 50,000 jobs in December. That was one of the weakest monthly gains in years. At the same time, the unemployment rate fell to 4.4% and wage growth stayed firm at 3.8% year over year.

Markets read the data as a cooling labor market, not a collapsing one. That kept risk assets stable, including Bitcoin, which has traded between $89,000 and $92,000 through the session.

The weak payroll number reduced fears of an overheated economy that could force tighter monetary policy. It also reduced the risk of a sudden growth shock that could trigger broad market selling.

That matters for Bitcoin. Over the past year, sharp drawdowns in crypto have followed signs of either runaway inflation or a rapid economic slowdown. Friday’s data showed neither.

Unemployment fell only slightly, while job growth slowed. That combination suggests the economy is losing momentum but remains stable. This supports a “soft landing” outlook rather than a recession.

As a result, Bitcoin avoided the type of risk-off move that would have pushed it back toward the low-$80,000s. 

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Why Bitcoin’s $100,000 Still Looks Hard in the Near Term

While the report removed one downside risk, it did not unlock a new upside driver.

Wage growth at 3.8% remains high enough to keep services inflation sticky. That gives the Federal Reserve room to stay on hold rather than move quickly toward rate cuts.

Bitcoin has rallied fastest in this cycle when markets priced in falling interest rates and rising liquidity. Friday’s data did not reinforce that narrative.

Instead, it supports a longer pause in policy. That limits the odds of a rapid liquidity-driven surge toward $100,000.

Bitcoin’s path back to six figures now depends less on labor data and more on capital flows and interest rate expectations.

Sustained inflows into spot Bitcoin ETFs would provide the demand needed to push through the $95,000 resistance zone. A clearer signal that the Fed plans to cut rates would also help.

For now, the jobs report keeps Bitcoin stable above $90,000. It removes the threat of a sudden macro shock. But it does not yet provide the spark needed for a clean breakout to $100,000.