US jobs data tightens yields, creating headwinds for Bitcoin

The US added 130,000 jobs in January and the unemployment rate fell to 4.3%, reducing the chances of near-term Federal Reserve rate cuts. The 10-year Treasury yield jumped toward 4.2%, tightening financial conditions and putting pressure on risk assets. Higher yields increase borrowing costs across the economy and raise the discount rate used to value risky assets.

Capital tends to rotate into safer, yield-generating securities as the dollar firms, a combination that saps liquidity and creates headwinds for Bitcoin, which briefly stabilized near $70,000 earlier in the week. David Hernandez, Crypto Investment Specialist at 21shares, said the report is a short-term headwind, dampening the probability of a March rate cut and reinforcing the Fed's pause at 3.50%–3.75%.

He added that cheaper-money catalysts were pushed further out, and that a firmer dollar and higher yields would likely keep BTC range-bound in the near term.

United States

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