The US jobs report came in stronger than expected, indicating that the labor market may stabilize even in light of the US-Iran war. Bitcoin fell after the data release as traders cut their bets on Federal interest rate cuts this year.
US jobs report comes in strong, Bitcoin declines
Latest Bureau of Labor Statistics statement The data showed that the United States added 178,000 jobs in March, well above estimates of 65,000 jobs. This represents a rebound from the 92,000 jobs the US lost in February, with the figure revised upward to 133,000. This is also the largest monthly addition since March 2025.
Meanwhile, the unemployment rate fell to 4.3%, below estimates of 4.4% in February. It is worth noting that the recovery occurred amid the Iran war, which began at the end of last February. This latest jobs report strengthens the Fed’s case for keeping interest rates steady for now, even as some Fed officials express concerns about the labor market amid inflation risks from the war.
the Bitcoin price It fell sharply to below $67,000 after the release of the US jobs report. The flagship cryptocurrency is currently trading at around $66,800, down on the day, according to TradingView data.
As the labor market rebounds, the Fed will likely pause interest rates at its April FOMC meeting and prioritize inflation over the labor market. This is bearish for risk assets like BTC as these interest rate cuts typically pump more liquidity into the market.
In addition to the jobs report, Bitcoin is seeing significant volatility today due to… Crypto options expire. $2.1 billion worth of BTC and ETH options expired today, with $68,000 being the maximum price for Bitcoin.
Traders are reducing their bets on interest rate cuts this year
Market participants reduced their bets on a Federal Reserve rate cut this year following the release of the March US jobs report. CME FedWatch data shows that traders expect the Fed to keep interest rates steady throughout this year, while the odds of a rate cut at FOMC meetings through October are in the single digits.
Furthermore, there is only a 12.8% chance that the Fed will cut interest rates at the FOMC meeting in December. It is worth noting that Federal Reserve Chairman Jerome Powell noted Earlier this week, the European Central Bank said that cutting interest rates would still be possible this year, but only if there are signs of weakness in the labor market.
Cryptocurrency traders remain more optimistic about a Fed rate cut this year, with the majority expecting a rate cut by October. Polymarket data shows a 55% chance of a cut at the October meeting and a 64% chance at the December meeting.
