Story
Bitcoin Climbs Past $61,000 as Weaker US Jobs Report Cools Rate Hike Fears
Summary
Bitcoin's price increased on Thursday, briefly topping $62,000, after a U.S. labor report indicated slower job growth than anticipated. The data has eased investor concerns about potential interest rate hikes from the Federal Reserve.
Bitcoin gained on Thursday, rising over 2% to trade at approximately $61,416 in late afternoon trading after briefly surpassing the $62,000 mark. The rally was linked to new U.S. economic data that tempered expectations for further interest rate hikes by the Federal Reserve.
The U.S. nonfarm payrolls report released Thursday showed that employers added 57,000 jobs in June, significantly below the 115,000 that economists had forecast. The figure was also a decrease from the revised 129,000 jobs added in May, while the unemployment rate saw a slight dip to 4.2%.
The softer-than-expected labor market figures may give the Federal Reserve more flexibility to hold interest rates steady. Lower borrowing costs are generally considered favorable for speculative assets, including cryptocurrencies. Following the report, traders reportedly adjusted their expectations, with futures markets indicating a lower probability of a near-term rate increase.
AdThe positive sentiment extended to the broader cryptocurrency market. Ethereum, the second-largest cryptocurrency, climbed over 5%, while other major tokens such as XRP, Solana, and Cardano also posted gains.
Thursday's increase provides some relief for the crypto market, which has faced sustained pressure recently. The sector has been impacted by persistent outflows from U.S. spot exchange-traded funds and a general weakening of investor risk appetite, with Bitcoin having declined significantly in the first half of the year.