Bitcoin Dominance Reaches Its Highest Level in Four Years as US Job Data Exceeds Expectations

This increase comes as the latest U.S. job data has given investors reason to reassess their economic expectations, affecting Bitcoin's breakout potential.

U.S. non-farm payrolls increased by 177,000 in April, the Labor Department reported on Tuesday, missing a modest estimate of 133,000 following March’s upwardly revised 228,000 gain. The unemployment rate remained at 4.2, meeting predictions.

Non-farm payrolls increased by 177,000 last month, the Labor Department said. Economists polled by covered a median increase of 133,000 jobs, following March’s 228,000 gain.

Payrolls in the private sector rose by 151,000 versus expectations of 120,000, while economists had anticipated a decrease in government payrolls to 25,000 from the prior month’s 82,000 increase.

The unemployment rate remained at 4.2, tying in with predictions. Economists had projected a slight rise from March’s 4.0.

The strong labor market data could delay or prevent any potential rate cuts by the Federal Reserve. Many investors had anticipated weaker employment figures, which would push the Fed to lower interest rates. Lower rates generally support riskier investments, such as Bitcoin, as liquidity flows into the market.

However, this new data suggests that the job market remains strong enough that rate cuts may not be necessary any time soon. This could shift market sentiment away from riskier assets.

The implications for Bitcoin are mixed. On the one hand, lower interest rates and a stronger U.S. dollar could discourage investors from investing in riskier assets like Bitcoin. On the other hand, a healthier economy could lead to increased demand for goods and services, which could ultimately benefit Bitcoin as a payment network.

The digital asset market will be closely watching the Federal Reserve’s next move to see how it will respond to these new economic conditions.

In addition to the job data update, Bitcoin has seen its dominance in the general cryptocurrency market continue to rise.

As of May 2, 2025, Bitcoin’s market dominance reached 64.89, the highest since January 2021.

This shows a growing preference for Bitcoin as a safer option amidst economic uncertainty.

Bitcoin price was trading at around $97,026.39 for the past 24 hours, showing a minor increase of $97,469.2.

It is crucial to note that the increase in Bitcoin dominance is largely due to institutional inflows. Firms like Metaplanet have significantly increased their Bitcoin holdings in the past few months.

The Japanese firm raised $25 million through private bond sales, aiming to use the money to increase its Bitcoin holdings and reach 100,000 BTC by 2025.

Bitcoin has also seen increased interest as some investors shift their attention away from traditional assets like U.S. treasuries, further strengthening its position in the market at the expense of altcoins.

For instance, investment firm Prime Two has dropped Ethereum after six years and shifted its focus entirely to Bitcoin.

The firm announced it will focus exclusively on Bitcoin (BTC) amid an increase in bullish sentiment and institutional inflows into the world’s largest digital currency.

Some market watchers believe that Bitcoin’s fixed supply and long track record make it a safer choice for those seeking long-term value.

With global markets still facing challenges and uncertainty, Bitcoin’s performance and stability have kept it on the radar of many investors in the crypto space.