Bitcoin is showing its classic "volatility dance" this week as the U.S. macro landscape delivers a mixed bag of signals. Between a surprisingly hot labor market and cooling inflation, the big question for every trader is: What does the Fed do next?
Here is your breakdown of the three massive data points from last week that are currently driving the BTC price action.
The NFP "Blowout": Jobs Market Refuses to Cool
The Non-Farm Payrolls (NFP) report for January (released Feb 11) stunned the markets. While analysts expected a modest +70K, the actual figure came in at 130,000 jobs.The Impact: Initially, this was bearish for BTC. Why? A resilient labor market gives the Federal Reserve more "cushion" to keep interest rates higher for longer. Higher rates usually strengthen the Dollar and put pressure on "risk-on" assets like Bitcoin.The Unemployment Rate edged down to 4.3% (beating the 4.4% forecast).
Unemployment Rate: The 4.3% Surprise
The Unemployment Rate edged down to 4.3% (beating the 4.4% forecast).
The Context: This is the lowest level since last July. While good for the economy, it complicates the "Fed Pivot" narrative. Traders who were hoping for aggressive rate cuts in March had to temper their expectations, leading to some sideways "chop" in the $66k–$67k range.
CPI: The Silver Lining for Bulls 📈
Friday brought the much-needed "soft landing" data. The Consumer Price Index (CPI) showed annual inflation slowing to 2.4%—undershooting the 2.5% forecast.
The Reaction: This is the bullish catalyst. Gasoline and energy prices saw significant declines, suggesting that despite a strong job market, the actual "heat" in prices is fading. Bitcoin reacted positively to this, attempting to reclaim the $68,000 level as the market priced back in the possibility of a policy easing later this year.
Where is BTC Heading?
Currently, Bitcoin is trapped in a tug-of-war. The strong labor market acts as a "ceiling" on immediate price surges, while the cooling inflation acts as a "floor."
If BTC can decisively break and hold above the $68,400 resistance, the next stop could be a test of $72k. However, if the Dollar continues to rally on the back of the jobs data, expect a retest of the $64,500 support zone.
What’s your move? Are you buying the CPI dip or waiting for more clarity from the Fed? Let me know your targets in the comments! 👇
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