Bitcoin kicks off May 2025 with a powerful rally, surging past $97,000 for the first time since late February as a stronger-than-expected US jobs report fuels complex cross-currents across risk assets. The cryptocurrency trades at $96,910 at press time, up more than 2.4% on the week, with intraday highs touching $97,059 — a ten-week peak that wipes out short-term losses and restores profitability for a significant segment of holders.
TL;DR
- Bitcoin reaches $97,059, its highest level since February 21, 2025
- US nonfarm payrolls add 177,000 jobs in April, beating the 130,000–140,000 forecast
- Unemployment holds steady at 4.2%, a 17-month high
- Trump pressures the Federal Reserve to cut rates on Truth Social
- Glassnode data shows short-term holders return to profit for the first time in weeks
US Labor Market Shows Resilience
The Bureau of Labor Statistics reports that the US economy added 177,000 jobs in April 2025, considerably exceeding consensus estimates of approximately 130,000 to 140,000. The unemployment rate remains unchanged at 4.2%, matching forecasts and tying a 17-month high. Average hourly earnings rise 0.3% month over month and 3.8% year over year, reflecting stable but moderated wage growth.
Job gains concentrate in healthcare, which adds 48,000 positions, and transportation, contributing 17,000 new roles. Manufacturing payrolls increase by 6,000, while federal government employment edges down by 3,000. Revisions to previous months subtract a net 32,000 jobs from first-quarter figures, softening the three-month average increase to 152,000. The labor force participation rate holds at 62%.
The strong jobs number presents a paradox for crypto markets. On one hand, economic resilience supports risk appetite and drives equities higher — the S&P 500 and Nasdaq Composite both climb more than 1.3% on the day. On the other hand, a robust labor market gives the Federal Reserve less urgency to cut interest rates, which traditionally reduces the liquidity inflows that benefit speculative assets like Bitcoin.
Trump Calls for Immediate Rate Cut
US President Donald Trump uses his Truth Social platform to repeat calls for the Federal Reserve to lower interest rates, posting that consumers “have been waiting for years to see pricing come down” and adding “NO INFLATION, THE FED SHOULD LOWER ITS RATE!!!” The post references various inflation metrics as evidence that monetary policy remains too tight despite progress on price stability.
Trump pressure on the Fed comes amid his ongoing implementation of trade tariffs and follows a week of mixed macroeconomic signals. Market pricing via CME Group’s FedWatch Tool puts the probability of a rate cut at the upcoming May 7 Federal Reserve decision at just 2%, though futures markets continue to price in potential easing during the second half of 2025.
The president’s first 100 days in his second term have been marked by significant crypto policy moves, including Executive Order 14178 banning a US CBDC, the creation of a Strategic Bitcoin Reserve using seized government assets, and the appointment of pro-crypto Paul S. Atkins as SEC Chair. However, Bitcoin remains roughly 11% below its inauguration-day peak above $109,000.
Short-Term Holders Return to Profit
On-chain analytics from Glassnode reveal that Bitcoin’s rally above $97,000 restores profitability for short-term holders who have been underwater for weeks. The cost basis ribbon for short-term holders shows that investors holding BTC for over one month return to profit, a shift that eases selling pressure from this cohort and may signal early positive momentum.
Bitcoin recovers nearly 21% from its February low of $78,900 and approximately 28% from its early April trough near $75,000. The recovery trajectory demonstrates the asset’s resilience despite macroeconomic uncertainty driven by trade tensions with China, tariff policy volatility, and mixed signals from the Federal Reserve.
Traders remain divided on the near-term outlook. Popular analyst Daan Crypto Trades warns that the breakout above the $93,000 to $96,000 range could be a “liquidity grab” that reverses, while Rekt Capital identifies $99,000 as the key weekly close level needed to confirm a genuine range breakout. Exchange order book data shows sellers defending the $97,200 level with shorts continuing to scale into price, suggesting the battle between bulls and bears intensifies heading into the weekend.
Broader Market Context
Ethereum trades at approximately $1,843, with the broader crypto market capitalization hovering near $3.1 trillion. The total market shows modest gains correlating with Bitcoin’s move, though altcoin performance remains mixed. BTC ETF inflows reach $936 million in a single day earlier in the week, underscoring sustained institutional appetite for Bitcoin exposure despite the uncertain rate outlook.
The macro picture remains complex: China quietly grants tariff exemptions on approximately $40 billion in US imports — including semiconductors, medical equipment, and aviation parts — according to Bloomberg, even as Beijing maintains a tough public stance. This nuanced trade dynamic adds another layer to the macro environment that Bitcoin and crypto markets must navigate.
Why This Matters
Bitcoin’s push above $97,000 on strong jobs data demonstrates its evolving relationship with macroeconomic indicators. The asset is no longer purely a hedge or purely a risk-on trade — it occupies an increasingly complex position as both a liquidity proxy and a store-of-value narrative vehicle. The return of short-term holders to profitability removes a key overhead supply, while institutional inflows through ETFs provide a structural bid. However, the Fed’s reluctance to cut rates and the looming possibility that this rally represents a liquidity trap rather than a breakout means the next few weekly closes are critical. If Bitcoin holds above $97,000 and challenges $99,000, the path toward six figures reopens. If it fails, the $93,000 to $96,000 range reasserts itself as a consolidation zone.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
177K jobs vs 135K expected and BTC still pumps. usually strong jobs means no rate cuts which is bearish for risk. something else is driving this rally, probably Trump pressure on Powell
healthcare adding 48K of the 177K jobs feels like a concentration risk in one sector. subtract that and the number looks way less impressive. markets overreacting as usual
Trump posting rate cut demands on Truth Social while BTC hits $97K. the man literally tweets the market higher and people still pretend politics does not move crypto
Glassnode showing STHs back in profit is the metric that matters here. once short term holders are green they tend to sell into strength which creates resistance at these levels