Bitcoin Held Above $23,400 After a Payroll Shock Tested the 2023 Rally

Bitcoin remained above $23,400 on February 4, 2023, after an unexpectedly strong U.S. employment report interrupted—but did not erase—the cryptocurrency market’s early-year advance. Ether recovered toward $1,680, leaving both leading assets higher over the completed week despite renewed concern that the Federal Reserve could keep interest rates elevated.

The Block placed bitcoin at approximately $23,424 at 12:04 p.m. Eastern Standard Time on February 4, little changed over its preceding 24-hour window. Ether was approximately $1,680, up 0.8% over the same rolling period. CoinGecko data cited by the publication showed seven-day gains of 1.5% for bitcoin and 5% for ether.

Those figures were aggregated USD spot references captured at one moment, not universal closing prices. Cryptocurrency trades continuously across venues, and prices, percentage changes and measurement cutoffs can differ among data providers.

The employment surprise

The immediate macroeconomic test originated on February 3. The U.S. Bureau of Labor Statistics’ initial January report said seasonally adjusted nonfarm payroll employment increased by 517,000 and the unemployment rate changed little at 3.4%. The release also noted that establishment-survey data incorporated annual benchmarking, updated seasonal factors and a conversion to the 2022 industry-classification system.

At approximately 9:40 a.m. Eastern on February 3, The Block reported bitcoin near $23,393 and ether near $1,641, with both down more than 2% over their respective preceding 24-hour windows. The publication attributed the weakness to the employment surprise and the resulting expectation that the Federal Reserve would continue tightening monetary policy.

That attribution was a contemporaneous market interpretation, not proof of a single cause. Crypto order books do not reveal one motive shared by every buyer and seller, and the quoted changes used rolling windows rather than a controlled before-and-after event study.

A conflicting week for rate expectations

The employment release complicated the market’s response to the Federal Reserve’s February 1 decision. The Federal Open Market Committee had raised its federal-funds target range by 25 basis points, to 4.5%–4.75%, after larger increases during 2022. Its statement nevertheless said further increases were expected to achieve a sufficiently restrictive stance and return inflation to 2%.

Crypto assets initially responded positively to the smaller February 1 increase. The February 3 labor data then supplied evidence that the economy might withstand additional tightening, weakening hopes that the central bank was close to ending its campaign.

Bitcoin’s position above $23,400 on February 4 therefore mattered less as a breakout than as evidence of absorption. The employment surprise produced a measurable pullback, but it did not drive bitcoin below $23,000 in the contemporaneous snapshots. Ether’s recovery from approximately $1,641 on February 3 to approximately $1,680 on February 4 also left it with the stronger seven-day performance.

Decrypt’s February 4 market review independently placed bitcoin just above $23,400 with a seven-day gain slightly above 1%, while ether was approximately $1,680 and up 5%. The difference between a bitcoin gain slightly above 1% and CoinGecko’s cited 1.5% illustrates the effect of different snapshot times and calculation windows; it is not necessarily a contradiction.

What February 4 established

The February 4 record supported a narrow conclusion: the leading cryptocurrencies stabilized after a macroeconomic shock and retained modest weekly gains. It did not establish that the early-2023 rally would continue, that interest-rate expectations had stopped influencing crypto, or that buyers had formed a durable price floor.

The next test remained future economic data and Federal Reserve communication. As of February 4, bitcoin’s resilience showed that the employment report had checked momentum without decisively reversing it.