The markets traded Wednesday amid a mixture of cautious optimism, and some lingering uncertainty.
A stronger-than-expected US jobs report offered brief reassurance after a bleak 2025, but sharp revisions underscored how fragile the labour market remains.
Bitcoin and other cryptos fell as a result of the rate cut bets.
Kraft Heinz has abruptly halted their plans to split up, and geopolitics, supply chains, and Taiwan’s efforts to reduce its dependency on China and secure US rare Earths remain in the spotlight.
US jobs report surprises
US employers created 130,000 new jobs in January. This is nearly twice the number expected. The unemployment rate dropped to 4,3%.
This better than forecast reading was accompanied by a harsh context. Benchmark revisions reduced 2025’s annual total of jobs to 181,000, or 15,000 per month, from the initially reported 584,000.
The healthcare sector added 82,000 jobs, but federal employment fell 34,000 due to Trump’s cuts.
The labor market is still sluggish despite January’s improvement. This is due to tariff uncertainties, tighter immigration restrictions that limit the supply of workers, and AI productivity increases reducing hiring requirements.
Bitcoin drops below $67K
Bitcoin slipped under $67,000 after a stronger-than-expected US jobs report nudged traders to dial back bets on near-term Federal Reserve rate cuts, lifting the opportunity cost of holding non-yielding assets.
After bitcoin’s recent rise from lows of $60,000, it failed to maintain above $70,00.
The next print of inflation could also reset expectations.
The wider crypto market also fell, as ether and major tokens like bitcoin dropped amid low liquidity and weak institutional demand.
The futures market now prices the Fed to hold off until June, after three reductions late in 2025.
Kraft Heinz halts plans for a breakup
Kraft Heinz has put a halt to its planned split. New CEO Steve Cahillane declared the problems of the company “fixable”, and demanded that all resources be focused on returning the growth.
Cahillane was hired to supervise the separation of the two companies in September, after the $46 billion failed merger ten years ago.
The sales fell 3.4% in the fourth quarter to $6.35billion, marking the ninth consecutive decline. Meanwhile, consumer sentiment has deteriorated and the pricing pressures are worsening since the announcement of the separation.
Cahillane is trying to prevent “dis-synergies”, or the splitting of businesses, while their business suffers.
Taiwan looks to US for rare earths
Taiwan has dispatched officials to the US to assess rare earth deposits. The aim is to refine vital minerals in Taiwan and to reduce China’s grip on global supply chains.
The Geological Survey and Mining Management Agency, according to Economy Minister Kung Ming-hsin, will assess whether American deposits have the rare earth elements Taiwan needs.
It is estimated that the island uses 1,500 tonnes of crude oil per year, which will increase to 2,000 tons with increased economic activity. Plans are in place to construct a refining pilot line to satisfy half of its domestic needs within three years.
Taiwan’s participation comes shortly after Trump announced Project Vault – a stockpile of strategic minerals worth $12 billion – in response to China’s last year’s export bans that devastated the automakers’ and defense industries’ sectors.
The post This Post Evening Digest: Bitcoin drops after US jobs report and Kraft Heinz’s breakup pause may be updated as new information becomes available
