News 
May 3, 2025 
5 min. 
Bitcoin joined stocks in holding modest gains after the May 2 Wall Street open, buoyed by stronger-than-expected U.S. nonfarm payrolls data that signaled continued resilience in the labor market. As investor sentiment improved, Bitcoin soars to 10-week high, reaching multimonth price levels not seen in recent weeks.
The positive jobs report boosted confidence across both traditional and digital markets, reinforcing Bitcoin’s momentum amid shifting economic expectations.
Bitcoin Holds Steady as Strong US Jobs Data Clouds Rate Cut Hopes
Bitcoin hovered around the $97,000 mark after the release of stronger-than-expected U.S. nonfarm payrolls data, according to figures from TradingView. The market response followed a busy week of macroeconomic updates that kept investors on edge.
April’s nonfarm payrolls report revealed 177,000 new jobs—well above the projected 140,000—signaling ongoing strength in the labor market. “The labor market is still holding up,” noted financial commentary platform The Kobeissi Letter in a post on X.
While robust job numbers might typically be seen as a positive sign, they complicate the outlook for Bitcoin and other risk assets. A resilient labor market suggests the U.S. economy is still weathering higher interest rates, which could encourage the Federal Reserve to maintain its current monetary policy stance for longer.
This limits the likelihood of near-term rate cuts, a scenario that traditionally fuels market liquidity and benefits assets like Bitcoin. Despite the headwind, traditional equity indices responded positively, with both the S&P 500 and Nasdaq rising over 1.3% at the time of reporting.
Meanwhile, former U.S. President Donald Trump renewed his pressure on the Fed via Truth Social, demanding immediate rate cuts and pointing to easing inflation. “Consumers have been waiting for years to see pricing come down. NO INFLATION, THE FED SHOULD LOWER ITS RATE!!!” he wrote.
As reported earlier, the Federal Reserve is scheduled to announce its next policy decision on May 7. According to CME Group’s FedWatch Tool, markets currently assign just a 2% chance of a rate cut at that meeting.
Bitcoin Faces Liquidity Trap Fears Amid Push Toward $99K
Bitcoin traders remain cautious as BTC continues to test resistance levels following its breakout from a tight trading range earlier this week. Despite upward momentum, concerns are rising over a potential “liquidity grab” that could precede a sharp reversal.
A seasoned trader, Skew, highlighted ongoing pressure from sellers defending the $97,200 zone. Sharing insights on X, he noted: “It’s shaping up to be an interesting day. Sellers are actively protecting $97.2K while short positions are building. Once again, passive spot flows might dictate the next move.”
Another analyst, Daan Crypto Trades, expressed skepticism about the sustainability of the current surge. He commented, “Bitcoin broke out of the $93K to $96K range after being tightly compressed for about a week. But if we slip back into that range, it may confirm this was just a liquidity sweep.”
Echoing that sentiment, trader TheKingfisher pointed to visible bid-side liquidity, suggesting it could lead to a short-term pullback, possibly dragging BTC back to the $95,000 level.
Meanwhile, market analyst Rekt Capital provided a key upside target of $99,000 for the week’s close. He emphasized the importance of holding above $93,500 to maintain bullish structure. “If that level holds, we could see a full range move,” he said, referring to the BTC/USD weekly chart. “The critical resistance remains the Lower High around $99K, which Bitcoin must break to confirm strength.”
As volatility continues to hover, market watchers remain alert for signs of either sustained momentum or a strategic shakeout.
