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Bitcoin Rallies Past $61,000 as Weak Jobs Data Eases Fed Rate Hike Fears
Bitcoin prices rallied on Thursday, briefly rising above $62,000, after a weaker-than-expected U.S. jobs report tempered expectations for further interest rate hikes from the Federal Reserve. The leading cryptocurrency was last trading up 2.2% at $61,416.6, providing a moment of relief amid a prolonged market downturn.
Disappointing Jobs Report Fuels Rally
The catalyst for the move was a U.S. nonfarm payrolls report showing employers added just 57,000 jobs in June. This figure was significantly below the 115,000 that economists had forecast and a marked slowdown from the revised 129,000 jobs added in May. The unemployment rate ticked down slightly to 4.2%.
Softer labor market data eases pressure on the Federal Reserve to raise interest rates to cool the economy. Lower borrowing costs are generally considered supportive for speculative, higher-risk assets like cryptocurrencies, as they can make safer investments like bonds less attractive.
Market Reaction and Fed Outlook
Following the data release, investors adjusted their expectations for future Fed policy. According to Investing.com, traders priced out the possibility of a rate increase in September, although futures markets tracked by the CME Group’s FedWatch tool still indicated odds of a move in October.
AdThe data complicates the Fed's assessment of the economy. Speaking on Wednesday, Fed Chairman Kevin Warsh called the jobs picture "steady" while reiterating the central bank's primary focus on returning inflation to its 2% target, as per the source material.
Broader Crypto Market Context
The day's gains come against a challenging backdrop for the digital asset market, which has been weighed down by persistent outflows from U.S. spot exchange-traded funds and weakening risk appetite. Bitcoin recorded a decline of more than 30% in the first six months of 2026.
Other cryptocurrencies also advanced on the news:
- Ethereum (ETH) climbed 5.1% to $1,699.19.
- XRP gained 2.3% to $1.0820.
- Solana (SOL) and Cardano (ADA) rose by 4.7% and 5%, respectively.