Bitcoin Price Stalls at $97,000 Amid Fed’s Jobs Report Tightrope

Bitcoin price remained stagnant around the $97,000 mark on February 7. Investors anxiously awaited the release of the U.S. jobs report on February 8.

The cryptocurrency, which had fallen by 3.5% the day before, found itself trapped in a narrow trading range.

Macroeconomic factors and liquidity levels dictated its next move. The upcoming employment data, set to be released on February 8, could significantly influence the Federal Reserve’s monetary policy, adding further pressure to Bitcoin and other risk assets.

Jobs Report: A Potential Market Shaker?

The U.S. labor market is under the spotlight as January’s nonfarm payrolls data approaches.

Prediction markets, particularly Kalshi, indicate a 28% chance that the economy added over 300,000 jobs last month.

If accurate, this would be the first time since March 2024 that job growth has surpassed the 300,000 threshold.

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However, Wall Street’s expectations are far more conservative, with a median estimate of just 169,000 jobs added.

This discrepancy between prediction markets and official forecasts has created uncertainty, leaving traders on edge.

As noted by The Kobeissi Letter in a February 6 post on X,

“This is SIGNIFICANTLY above Wall Street’s median expectation of 169,000 jobs added. If the US economy adds over 300,000 jobs, it would mark the first such occurrence since March 2024.”

Fed Rate Cut Odds Diminish

The likelihood of a Federal Reserve rate cut in the near term has diminished significantly.

According to CME Group’s FedWatch Tool, as of February 7, the probability of a 0.25% rate reduction at the Fed’s March meeting stands at just 14.5%.

This reflects growing market confidence that strong labor market data will allow the central bank to keep rates elevated, a scenario that typically dampens investor enthusiasm for volatile assets like Bitcoin.

Higher interest rates increase borrowing costs and reduce liquidity in financial markets, making riskier investments less attractive.

Bitcoin, often viewed as a proxy for risk sentiment, has struggled to gain momentum despite favorable technical conditions.

Bitcoin price action has been confined to a tight range, with traders closely monitoring key liquidity levels for potential breakouts.

Analyst Mark Cullen highlighted on X that short-term liquidity is clustered around current price levels, suggesting a possible shakeout before a decisive move.

Another trader, Skew, emphasized the need for an external catalyst to drive Bitcoin out of its current range.

In a February 7 post on X, Skew identified the $95,000–$100,000 range as a critical zone for Bitcoin’s next move, noting that the market remains “pinned” until a clear catalyst emerges.

What’s Next for Bitcoin Price Action?

The immediate focus for Bitcoin traders is the U.S. jobs report, which could either reinforce the current trading range or trigger a breakout.

A stronger-than-expected jobs number may push Bitcoin toward $95,000 as markets brace for a more hawkish Fed stance.

Conversely, a softer report could reignite hopes of rate cuts, potentially propelling Bitcoin toward $100,000.

At the time of writing, BTC was trading at $97,307, according to data from Coinmarketcap and TradingView.

The $95,000 level remains a critical support zone, with significant liquidity likely to influence Bitcoin’s price action in the coming days.