Bitcoin faces increased macroeconomic pressure following the latest US jobs report, which revealed stronger-than-expected labor market performance. The US economy added 130,000 jobs in January, nearly double the anticipated figure, while the unemployment rate fell to 4.3%. This robust employment data has pushed Treasury yields higher, reducing the likelihood of near-term Federal Reserve rate cuts.
The immediate market reaction saw the US 10-year Treasury yield rise to 4.20%, reflecting diminished expectations for monetary easing. Higher yields typically tighten financial conditions, increasing borrowing costs and impacting risk assets like Bitcoin. As yields rise, capital often shifts towards safer investments, creating headwinds for cryptocurrencies.
Bitcoin, which briefly stabilized near $70,000 earlier in the week, now faces potential volatility without clear signals of policy easing from the Fed. The strong jobs report suggests a "higher-for-longer" rate environment, complicating the outlook for Bitcoin's sustained growth unless liquidity conditions improve or yields decrease.
US Jobs Data Poses Challenges for Bitcoin Amid Rising Treasury Yields
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