Bitcoin rises 3.81% to close at $90,606 on jobs data

Weak jobs data and higher-than-expected ISM Services PMI are causing volatility in the markets, while Bitcoin maintains its upward trend.

Bitcoin closed with a gain of 3.81% to reach $90,606, boosted by weaker-than-expected US jobs data. However, the rally was limited after the release of a higher-than-expected ISM Services PMI, which caused volatility in the markets. Meanwhile, investors are eagerly awaiting the next non-farm payrolls report and the possible announcement of the Bitcoin Strategic Reserve by President Trump.

Bitcoin confirmed dynamic support at the EMA200, sending a long-term bullish signal. / Tradingview

Weak jobs data: A boost for bitcoin

The ADP Employment Change report showed that private companies in the US created only 77,000 jobs in February, well below the forecast of 140,000 and the previous figure of 186,000. This figure represents the lowest reading since August 2024, suggesting a significant slowdown in the labor market.

According to Nela Richardson, chief economist at ADP, "political uncertainty and slowing consumer spending could have led to layoffs or a slowdown in hiring." This scenario increases expectations that the Federal Reserve (Fed) could ease its monetary policy, which weakens the dollar and benefits risk assets such as bitcoin.

ISM Services PMI: An unexpected counterweight

Although the employment data was weak, the ISM Services PMI beat expectations, reaching 53.5 against a forecast of 52.6 and a previous figure of 52.8. This indicator, which measures the activity of the services sector, suggests accelerated growth in one of the pillars of the US economy.

This result could strengthen the dollar and put pressure on risk assets, such as cryptocurrencies. However, Bitcoin managed to maintain its upward trend, closing above the EMA200 at USD 85,800, a key dynamic support.

Bitcoin maintains its strength

Bitcoin confirmed dynamic support at the EMA200, sending a long-term bullish signal. Trading volume slightly exceeded the 25-day average, indicating active participation by buyers. In addition, the formation of a bullish candle with short wicks suggests solid bullish sentiment.

In the coming sessions, Bitcoin could challenge the resistance formed by the EMA100 at $93,000. However, investors will need to keep an eye on upcoming economic data, such as the non-farm payrolls report, which will be released next Friday.

Bitcoin ETF Capital Flows

So far this week, Bitcoin ETFs have seen net, albeit moderate, outflows. Monday saw $74.20 million in outflows, while Tuesday saw $143.50 million in outflows. These moves reflect some caution among investors, who are awaiting key news, such as President Trump's announcement of the Bitcoin Strategic Reserve at the upcoming White House summit.

Where is Bitcoin Going?

Bitcoin has shown resilience by breaking above $90,000, boosted by a weak dollar and a slowing labor market. However, service sector growth and Fed monetary policy expectations could lead to volatility in the coming days. Investors will need to keep an eye on upcoming economic data and Trump's potential announcement, which could mark a watershed for the crypto market.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial, investment or legal advice. Please do your research and consult a professional before making any financial decisions.