WTI Price Analysis: Oil prices rise after NFP data
Source Fxstreet
- WTI crude oil surges as US labor market data fuels demand optimism.
- Nonfarm payrolls miss expectations, but wage growth remains strong.
- Labor force participation rate edges higher, supporting energy demand outlook.
The West Texas Intermediate (WTI) crude oil prices climbed on Friday to around $70.80, buoyed by renewed optimism over energy demand following the latest US labor market report. While Nonfarm Payrolls (NFP) data revealed a weaker-than-expected 143K job additions in January, the overall labor market resilience and steady wage growth helped drive crude prices higher.
Despite the soft job additions, the US unemployment rate held firm at 4%, aligning with expectations. Wage growth remained solid, with average hourly earnings rising 0.5% month-over-month, in line with forecasts, while the year-over-year figure reached 4.1%, surpassing the anticipated 3.9%. Additionally, the labor force participation rate ticked up to 62.6%, reinforcing expectations of sustained economic activity and energy consumption.
It worth noticing that weak economic dat might prompt the Fed to consider sooner rate cuts and hence economic activity might flourish which could push demand for oil higher and benefit the price.
WTI crude oil is trading above $70.50 per barrel, testing a key resistance level at $71.00. A successful break above this threshold could pave the way for further gains, while immediate support lies at $70.00. Traders will closely monitor upcoming macroeconomic developments for additional market direction.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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Bitcoin experienced a sharp decline this weekend, briefly erasing its 2025 gains and dipping below its year-opening value of $93,507. The cryptocurrency fell to a low of $93,029 on Sunday, representing a 25% drop from its all-time high in October. Although it has rebounded slightly to around $94,209, the pressures on the market remain significant.
The downturn occurred despite the reopening of the U.S. government on Thursday, which many had hoped would provide essential support for crypto markets. This year initially appeared promising for cryptocurrencies, particularly after the inauguration of President Donald Trump, who has established the most pro-crypto administration thus far. However, ongoing political tensions—including Trump's tariff strategies and the recent government shutdown, lasting a historic 43 days—have contributed to several rapid price pullbacks for Bitcoin throughout the year.
Market dynamics are also being influenced by Bitcoin whales—investors holding large amounts of Bitcoin—who have been offloading portions of their assets, consequently stalling price rallies even as positive regulatory developments emerge. Despite these sell-offs, analysts from Glassnode argue that this behavior aligns with typical patterns seen among long-term investors during the concluding stages of bull markets, suggesting it is not indicative of a mass exodus.
Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses.
Looking ahead, questions linger regarding the viability of the four-year cycle thesis, particularly given the increasing institutional support and regulatory frameworks now in place in the crypto landscape. Matt Hougan, chief investment officer at Bitwise, remains optimistic, suggesting a potential Bitcoin resurgence in 2026 driven by the “debasement trade” thesis and a broader trend toward increased adoption of stablecoins, tokenization, and decentralized finance. Hougan emphasized the soundness of the underlying fundamentals, pointing to a positive outlook for the sector in the longer term.
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