Story
Bitcoin Rises Above $61,000 as Weak U.S. Jobs Data Cools Fed Rate Hike Fears
Summary
The cryptocurrency market rallied 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 increase.
Bitcoin and other major cryptocurrencies gained on Thursday after a surprisingly soft U.S. jobs report eased investor concerns about further interest rate hikes from the Federal Reserve. The world's largest digital asset by market capitalization rose 2.2% to trade at $61,416.6, briefly crossing the $62,000 threshold during the session.
Weaker Jobs Data Fuels Market Rally
The 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 marked slowdown from the revised 129,000 jobs added in May.
The unemployment rate ticked down to 4.2%, according to the report. The weaker-than-expected labor data suggests a cooling economy, which could give the Federal Reserve more leeway to hold interest rates steady rather than raise them to combat inflation.
Fed Rate Expectations Shift
Following the jobs data release, traders adjusted their expectations for future Fed policy. According to the CME Group's FedWatch tool, futures markets have now priced out the probability of a rate increase in September. Lower borrowing costs are generally seen as a positive for speculative, higher-risk assets like cryptocurrencies.
AdSpeaking on Wednesday before the data release, Fed Chairman Kevin Warsh described the jobs picture as "steady," while reiterating the central bank's primary focus remains on bringing inflation back to its 2% target, as reported by Investing.com. The softer labor market numbers, however, complicate the central bank's economic assessment.
Broader Market Context
Thursday's gains provide some relief for a market that has been under sustained pressure, with Bitcoin declining more than 30% in the first half of 2026. The recent selloff has been attributed to persistent outflows from U.S. spot Bitcoin ETFs and a broader weakening of risk appetite among investors.
The positive sentiment was felt across the digital asset space, with most major altcoins also posting gains. Key performers included:
- Ethereum (ETH): climbed 5.1% to $1,699.19
- Solana (SOL): improved 4.7%
- Cardano (ADA): rose 5.0%
- XRP: gained 2.3% to $1.0820