Bitcoin (BTC) has surged to $87,000 after falling below $86,000 on Monday. This surge has been stirred by the release if the U.S labor market data which came in stronger than expected. 

While job creation exceeded forecasts, however, a rising unemployment rate has complicated the outlook, leaving traders divided on whether the data supports tighter or looser monetary conditions. Nonetheless, investors have expressed bullishness for Bitcoin, which is vital to trigger a recovery towards $100K. 

US Jobs Data Comes in Higher Than Expected

Data from the U.S. Bureau of Labor Statistics, released on December 16, showed nonfarm payrolls increased by 64,000 in November. The figure exceeded expectations of 50,000 but still pointed to slower hiring compared to earlier months.

Meanwhile, the October data was revised downward indicating a reduction of 105,000 jobs contrary to earlier estimates that had indicated an increase. Additionally, September payroll additions were also not that strong and stood at 119,000. These adjustments indicate that the labor market has weakened over the past two months.

Unemployment rate has also increased to 4.6% – its highest level since September 2021 and marginally above expectations. Although the increase in payroll is a sign of economic stability, the increasing unemployment rate indicates that the labor condition is still fragile. 

The report came right after the Federal Reserve lowered the interest rates by 25 bps last week. In the FOMC press conference, Chairman Jerome Powell indicated a reserve stating that policymakers seek more clarity, before promising further cuts. The mixed labor data supports that cautious approach.

Financial markets, including crypto, are now focused on forthcoming inflation data. Release of the CPI data is scheduled for December 18 with the data from the report expected to shape expectations ahead of the January FOMC meeting. The Fed remains split between protecting employment gains and keeping inflation under control.

Bitcoin Climbs Above $87,000

With the US jobs data coming in strong, Bitcoin surged rapidly on the news. The king crypto, which had dropped below $86,000 on Monday trading session, climbed swiftly above $87,000. As at press time, BTC was trading at $87,147 per the daily chart on TradingView. 

Meanwhile, investors have expressed their shift in stance for BTC as they eye a stronger recovery. One investor, for instance, has expressed that he’ll be bullish for Bitcoin especially if November CPI data comes in softer than expected. 

According to him, the odds for a January 2026 interest rate cut could increase if the CPI data indicates that inflation is cooling down. “Expect odds to increase if Nov CPI data comes in soft on Thursday.. bullish for $BTC,” he wrote. 

Macro Overview | January Rate Cut

📊Jan Fed Funds Rate

• Odds of 25-bps cut up to 24.4%
• Policy easing = bullish for risk-on assets

🗓Nonfarm Payrolls | Unemployment

• Nonfarm payrolls (Nov) 64K vs. 50K est
• Warning is (Oct) was -105K⚠️
• Unemployment: 4.6%⚠️

Expect… https://t.co/PmdNoByIuR pic.twitter.com/3SlnYY0R35

— MS2 Capital (@ms2capital) December 16, 2025

At the moment, the CME FedWatch data shows that there’s a 24.4% chance for a 25 bps interest rate cut in January. Meanwhile, there’s a 75.6% chance that the Fed will leave interest rates unchanged after the January FOMC meeting.