January Nonfarm Payrolls Rise To 130k, Bitcoin Climbs

The January U.S. Jobs report has come in strong, signaling that the labor market is indeed rebounding. Notably, nonfarm payrolls came in well above expectations, crushing expectations for a rate cut anytime soon. However, Bitcoin sharply climbed above $67,000 despite the strong jobs data.

U.S. Jobs Report Comes In Strong, Bitcoin Reacts

Bureau of Labor Statistics data shows that the U.S. added 130,000 jobs in January, way above expectations of 65,000. This marks the highest figure since April 2025. Meanwhile, the unemployment rate fell to 4.3%, below estimates of 4.4%.

CoinGape had earlier reported Wall Street’s forecast that nonfarm payrolls would come in at around 70,000, up from 50,000 in December. This latest jobs report is significant as it strengthens the Fed’s case to hold rates steady with the labor market rebounding.

Bitcoin had fallen to around $66,000 earlier in the day as crypto traders awaited this report. However, the flagship crypto quickly rebounded above $67,000 following the report, which is typically bearish for risk assets. However, the leading crypto has since dropped below this level and is now trading just above $66,000.

Following the strong jobs report, traders are further cutting their bets on a Fed rate cut. CME FedWatch data shows that there is now a 94% chance that the Fed will hold rates steady at the March FOMC meeting. The odds of a March rate cut had climbed to as high as 20% last week following the weak jobless claims and JOLTS job openings report. However, there is now only a 6% chance they will lower rates by 25 basis points at the March meeting.

Crypto traders are also betting on the Fed holding rates steady at the March FOMC meeting. Polymarket shows only a 9% chance they will cut rates. It is worth noting that these traders do not expect a rate cut until the June FOMC meeting. There is currently a 73% chance that the Fed will lower rates at the June meeting, according to Polymarket data.

Attention Turns To Inflation Data

Following the jobs report release, attention will now turn to the CPI data, which drops on Friday. Notably, Fed officials continue to raise concerns about inflation, stating that it remains well above their 2% target.

As CoinGape reported, Fed Presidents Beth Hammack and Lorie Logan signaled that they would continue to support a pause on further Fed rate cuts until inflation comes down. Hammack warned that inflation could persist near 3% through this year if they do not maintain the current monetary policy.

Meanwhile, Goldman Sachs analyst Kay Haigh noted that with the jobs report beating expectations, the Fed’s focus is shifting back to inflation. The analyst still expects the Fed to make two cuts this year, but warned that a strong CPI  reading on Friday could make the Fed more hawkish.