Key Highlights
- Bitcoin trades near $80,000 after a strong U.S. jobs report reduced hopes of Federal Reserve interest rate cuts.
- U.S. nonfarm payrolls increased by 115,000 in April, while unemployment remained at 4.3%.
- Markets reacted with a short-term Bitcoin decline as traders priced in fewer potential Fed rate cuts this year.
Bitcoin (BTC) is currently holding up tight near the $80,000 level following the release of the latest U.S. jobs report, which came up stronger-than-expected. This number reduces the hopes that the Federal Reserve could lower interest rates this year.
According to the data from the U.S. Bureau of Labor Statistics, nonfarm payrolls, which measure the number of jobs added in the economy, increased by 115,000 in April. Analysts had expected about 65,000 new jobs, making the result stronger than forecast.
The previous month’s figure was also revised to 178,000, marking a second straight month of job growth above 100,000. At the same time, the U.S. unemployment rate remained at 4.3%, exactly in line with market expectations.
This means that the U.S. labor market is still stable even as investors continue to worry about inflation and global uncertainty linked to the ongoing U.S.-Iran conflict. The report helps investors understand how strong the U.S. economy is.
When job growth stays strong, the Federal Reserve usually feels less pressure to lower interest rates. Lower rates are often seen as positive for risky assets like Bitcoin and other cryptocurrencies because investors tend to move more money into those markets when borrowing becomes cheaper.
Bitcoin briefly dips below $80K
After the data was released, Bitcoin briefly lost momentum. The cryptocurrency dropped from around $80,200 and briefly fell below the $80,000 level, down to $79,500, before regaining momentum. At the time of writing, Bitcoin is trading around $80,229.
On the daily chart, Bitcoin is trading downwards after hitting a resistance level at $82,000. At the same time, the chart recently formed a “bearish divergence” on the RSI indicator. This happens when the price keeps trying to move higher while buying strength starts slowing down.
Despite the pullback, current price action suggests Bitcoin could attempt another move toward the $82,800 level if buying pressure strengthens.
Options expiry adds pressure
The broader crypto market also faced pressure from a major crypto options expiry. According to data from CME Group, around $2 billion worth of Bitcoin and Ethereum options expired on Friday. Bitcoin’s “max pain” price was around $79,500.
This is the price level where the largest number of options traders could face losses, and markets often move close to that level during expiry periods.
Fed expectations remain in focus
Prediction market data from Polymarket showed that many traders now believe the Federal Reserve may not lower interest rates this year. The odds of no rate cuts in 2026 climbed to 56%, while the chances of at least one cut dropped to 19%.
This might affect how Bitcoin moves in the future because interest rates affect how much money flows into risk assets like crypto. When rates stay high for longer, investors may prefer safer options like bonds instead of Bitcoin. This can slow down price growth or keep the market in a tight range.
At the same time, if the Fed keeps rates unchanged for a long period, it can also reduce expectations of easy money coming back into the market. That means Bitcoin may rely more on strong demand from institutions and ETF inflows rather than rate-cut hopes for price support.
Also Read: Bitcoin Profit Signal Flashes as BTC Pulls Back From $81.7K
