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Bitcoin Climbs Above $61,000 as Weak US Jobs Data Cools Fed Rate Hike Bets
Bitcoin rose on Thursday, briefly topping $62,000, as a surprisingly weak U.S. jobs report eased investor concerns about further monetary tightening by the Federal Reserve. The leading cryptocurrency provided a rare bright spot for a market that has faced persistent selling pressure for months.
By late afternoon, Bitcoin was trading up 2.2% at $61,416.6, according to Investing.com data. The rally was mirrored across the digital asset space, with most major altcoins also posting gains.
Softer Labor Market Eases Rate Fears
The primary catalyst for the market's move was the U.S. nonfarm payrolls report, which showed the economy added just 57,000 jobs in June. This figure was well below the 115,000 that economists surveyed by Dow Jones had forecast and a significant slowdown from the revised 129,000 jobs added in May.
The data suggests a cooling labor market, which could reduce pressure on the Federal Reserve to raise interest rates to combat inflation. Lower borrowing costs are generally considered a positive for speculative risk assets, including cryptocurrencies, as they can make holding non-yielding assets more attractive.
AdMarket Impact and Outlook
Following the jobs data release, traders adjusted their expectations for future Fed policy. According to the CME Group's FedWatch tool, markets have now largely priced out the possibility of an interest rate increase in September. The broader cryptocurrency market reacted positively to the shifting outlook:
- Ethereum (ETH) climbed 5.1% to $1,699.19.
- XRP gained 2.3% to $1.0820.
- Solana (SOL) and Cardano (ADA) rose 4.7% and 5.0%, respectively.
Despite Thursday's relief rally, the cryptocurrency sector remains under significant pressure. Bitcoin recorded a decline of more than 30% in the first six months of the year, driven by persistent outflows from U.S. spot exchange-traded funds, slowing institutional demand, and regulatory uncertainty.