Bitcoin Rises to 10-Week High as Strong U.S. Jobs Data Fuels Trump’s Rate Cut Demands
Markets React as Nonfarm Payrolls Outperform Expectations; Bitcoin Eyes $100K Resistance
Bitcoin surged past $97,000, marking a 10-week high on May 2, after U.S. nonfarm payroll data showed an unexpectedly strong labor market, igniting fresh speculation around Federal Reserve interest rate moves. The uptick in employment numbers gave President Donald Trump ammunition to renew his call for rate cuts, even as the Fed signals restraint.
Labor Market Defies Expectations
U.S. nonfarm payrolls added 177,000 jobs in April, significantly outpacing the 140,000 forecast. The data paints a picture of an economy that remains resilient under tight monetary conditions—conditions that, under normal circumstances, would cool hiring.
“The labor market is still holding up,” noted market analysis outlet The Kobeissi Letter in a post on X (formerly Twitter).
The robust jobs report offers the Fed more room to maintain elevated interest rates, reducing the urgency for monetary easing. While that scenario typically dampens enthusiasm in risk markets like crypto, Bitcoin continued to climb, defying historical patterns.
Bitcoin and Stocks Rally Together
As of Thursday, Bitcoin traded at $96,602, climbing in tandem with major equities. The S&P 500 and Nasdaq Composite Index both advanced more than 1.3%, buoyed by strong employment data and Trump’s vocal push for looser monetary policy.
In a Truth Social post, Trump criticized the Fed, writing:
“Consumers have been waiting for years to see pricing come down. NO INFLATION, THE FED SHOULD LOWER ITS RATE!!!”
However, markets see little chance of that happening imminently. According to CME Group’s FedWatch Tool, odds of a rate cut at the May 7 FOMC meeting sit at just 2%.
Traders Warn of Potential “Liquidity Grab”
Despite the bullish momentum, seasoned crypto traders urged caution. With sellers defending the $97.2K level, some analysts suspect Bitcoin’s latest breakout may be a short-term liquidity trap.
“Going to be an interesting day ahead,” posted trader Skew on X.
“Shorts continue to scale into price. Passive spot flow will probably again decide the trend.”
Another analyst, Daan Crypto Trades, observed that BTC had broken out of the $93K–$96K range after a week of compression.
“So far it’s similar to last week’s setup,” he said, “but if we fall back into that range, it’s just a liquidity grab.”
Meanwhile, Rekt Capital set a bullish threshold:
“If Bitcoin continues to hold above $93,500, then price will be positioned for a move across the range,”
adding that $99,000 remains a key resistance to watch by week’s end.
Outlook: $100K in Sight, But Obstacles Remain
The broader sentiment remains cautiously optimistic. With Bitcoin’s unrealized profits nearing 350%, traders are watching key technical levels closely. For now, the market is walking a tightrope between macro-driven optimism and technical caution.
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