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Bitcoin Rallies Above $61,000 as Weak U.S. Jobs Data Cools Fed Rate Hike Bets
Bitcoin briefly surpassed the $62,000 mark on Thursday, rallying alongside other digital assets after a weaker-than-expected U.S. jobs report eased investor concerns about further Federal Reserve interest rate hikes. The cryptocurrency later settled, trading up 2.2% to $61,416.6 by late afternoon, providing some relief from a recent, prolonged selloff.
Weaker Jobs Data Eases Rate Hike Fears
The catalyst for the market move was a U.S. nonfarm payrolls report showing a significant slowdown in the labor market. According to the data, employers added just 57,000 jobs in June, falling well short of economists' forecasts for 115,000 and down from a revised 129,000 in May. The unemployment rate ticked down slightly to 4.2%.
This softer economic data complicates the Federal Reserve's policy outlook. For investors, a cooling labor market reduces the pressure on the central bank to raise interest rates to combat inflation. Following the report, traders adjusted their expectations, with futures markets tracked by the CME Group’s FedWatch tool pricing out the probability of a rate increase in September.
Market Reaction and Broader Context
AdThe prospect of lower borrowing costs for longer is generally viewed as a positive for speculative, risk-sensitive assets like cryptocurrencies. The relief was felt across the digital asset market, with most major altcoins also posting gains.
Key altcoin movements included:
- 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%, respectively.
Despite the day's gains, the broader trend for Bitcoin remains challenging. The cryptocurrency recorded a decline of more than 30% in the first six months of 2026, pressured by persistent outflows from U.S. spot exchange-traded funds (ETFs), slowing institutional demand, and a lack of progress on U.S. crypto legislation.