Story
Bitcoin Rises Above $61,000 as Weak U.S. Jobs Data Cools Fed Rate Hike Fears
Summary
Bitcoin and other major cryptocurrencies gained after a U.S. nonfarm payrolls report came in significantly below expectations, leading investors to scale back bets on a near-term Federal Reserve interest rate hike.
Bitcoin's price rallied on Thursday, briefly surpassing the $62,000 mark, after a surprisingly weak U.S. jobs report eased investor concerns about further interest rate hikes by the Federal Reserve. The leading cryptocurrency was last trading up 2.2% at $61,416.6, providing some relief from a recent market-wide selloff.
Disappointing Payrolls Data
The catalyst for the market's move was the latest U.S. nonfarm payrolls report, which showed a marked slowdown in the labor market. According to the data, employers added just 57,000 jobs in June, falling significantly short of the 115,000 that economists had forecast.
The unemployment rate edged down to 4.2%, but the headline job creation number complicates the Federal Reserve's assessment of the economy. The softer data gives the central bank more leeway to hold interest rates steady, a policy stance generally considered favorable for speculative assets like cryptocurrencies, which tend to perform better in lower-rate environments.
Shift in Rate Expectations
Following the report's release, traders adjusted their expectations for future Fed policy. According to the CME Group’s FedWatch tool, futures markets priced out the probability of a rate increase in September, although the possibility of a hike later in the year, such as in October, remains on the table.
AdThis shift in sentiment provided a tailwind for digital assets, which have increasingly traded in line with traditional risk assets like technology stocks. The rally was broad-based, with other major cryptocurrencies also posting gains:
- 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.
Broader Market Headwinds
Despite Thursday's gains, the cryptocurrency market remains under pressure from a prolonged downturn. Bitcoin recorded a decline of over 30% in the first half of 2026, weighed down by persistent outflows from U.S. spot exchange-traded funds (ETFs), slowing institutional demand, and a lack of clear regulatory progress in the United States.