On February 7, 2025, the U.S. Bureau of Labor Statistics released its latest Non-Farm Payroll (NFP) report showing lower-than-expected job growth.
This Bitcoin price surge is in line with sentiment that a slower labor market could lead to lower bond yields, which could ultimately benefit Bitcoin.
Can Bitcoin Rebound Above $100,000 Or Not?
The trading implications of NFP are clearly visible across a variety of trading pairs. BTC/USD saw a surge in trading volume, increasing from a daily average of 1.2 million BTC to 1.5 million BTC on February 7, 2025 (Coinbase, February 7, 2025). Similarly, ETH/USD saw a volume increase from 700,000 ETH to 900,000 ETH on the same day (Kraken, February 7, 2025). This increase in volume indicates a growing interest in the major cryptocurrencies after the release of labor market data.
In addition, the BTC/ETH pair showed a slight divergence, with Bitcoin outperforming Ethereum by 1.2% in the first hour after the NFP announcement. This move indicates traders’ tendency to choose Bitcoin as a safe haven asset over Ethereum in reaction to macroeconomic indicators.
Technical Analysis of Bitcoin Chart
Technical indicators following the NFP data release also reinforced the market reaction:
Bitcoin’s Relative Strength Index (RSI) rose from 60 to 68 in the first two hours, signaling higher buying pressure
Bitcoin’s Moving Average Convergence Divergence (MACD) showed a bullish crossover, with the MACD line crossing the signal line at 11:30 AM EST, suggesting a potential uptrend
On-chain metrics show a significant increase in Bitcoin active addresses, rising from 800,000 to 950,000 in the first three hours after the NFP release. This increase reflects increased market engagement and a possible asset accumulation phase.
The Relationship Between AI and Crypto Developments
In the context of AI technology developments, NVIDIA’s recent announcement of their latest AI chip, the A100, shows a correlation with AI-related tokens such as SingularityNET (AGIX) and Fetch.ai (FET). Following NVIDIA’s announcement on February 5, 2025, AGIX rose by 4.5% while FET rose by 3.8% in a 24-hour period (CoinMarketCap, February 6, 2025).
Trading volume for AGIX increased from 10 million to 15 million tokens on February 6, 2025, reflecting increased investor interest (Binance, February 6, 2025). Additionally, the correlation coefficient between AGIX and Bitcoin increased from 0.3 to 0.45 after NVIDIA’s announcement, indicating a stronger relationship between AI developments and major crypto assets (CryptoQuant, February 6, 2025). This correlation opens up trading opportunities in the AI-crypto crossover, where investors can capitalize on the synergy between AI technology advancements and cryptocurrency market trends.
The crypto market reaction to the January 2025 NFP data shows that investors continue to use Bitcoin as a hedge against economic uncertainty. With rising prices and increasing trading volumes, as well as technical indicators confirming bullish momentum, the crypto market remains sensitive to key macroeconomic data. In addition, developments in AI technology are also impacting related crypto assets, suggesting a market landscape that is increasingly integrated with technological innovation.
