Key Highlights
- Bitcoin surged above $62,000 after weak U.S. jobs data raised hopes that the Federal Reserve may not increase interest rates this year.
- The U.S. added only 57,000 jobs in June, far below the expected 115,000, while May’s jobs figures were also revised lower.
- Market expectations shifted after the report, with the chances of another Fed rate hike falling to 48%.
Bitcoin (BTC) climbed above $60,000 today after new U.S. jobs data came in much weaker than expected, giving investors hope that the U.S. Federal Reserve may not raise interest rates this year.
According to the data released by the U.S. Bureau of Labor Statistics, the economy added 57,000 nonfarm jobs in June, far below economists’ expectations of 115,000. The government also revised May’s jobs figure by 43,000, showing that hiring had been weaker than first reported. While job growth slowed, the unemployment rate came in at 4.2%, slightly better than the expected 4.3%.
Bitcoin rebounds above $62,000
Shortly after the report was released, Bitcoin climbed to $62,009, representing a 4.67% surge within the last 24 hours.
Trading activity also jumped by over 39% within the same period to about $45.23 billion. This came after Bitcoin experienced a hard time last week, with its price dropping to a $58K low.
Before the data release, Bitcoin traded sideways as traders awaited the report. At that period, the price was already holding steady between $60,992 and $61,250. At 8:30 AM ET, traders quickly reacted to the weaker-than-expected jobs data, pushing the price of Bitcoin to around $61,236 before settling.
Why the jobs data matters to investors
For many investors, the jobs report shifted market sentiment. A weaker labor market often signals that the economy is cooling, reducing the need for the Federal Reserve to raise interest rates further.
Higher interest rates usually make borrowing more expensive and reduce the amount of money flowing into investments. Lower chances of rate hikes can have the opposite effect, making riskier assets like Bitcoin more attractive.
Rate hike expectations drop to 48%
The shift in sentiment was also reflected in prediction markets. According to Polymarket data, the probability of another Federal Reserve rate hike this year fell to 48%, down from 54% the previous day.
Although this does not guarantee what the central bank will do, it shows that traders became less worried about another increase after seeing the weaker jobs numbers.
At the same time, expectations for the Federal Reserve’s July meeting also shifted. According to CME FedWatch, traders now see an 82.4% chance that interest rates will stay where they are. Just one day earlier, that figure was around 72%.
Fed chair signals a wait-and-see approach
Bitcoin also found support from comments made by Federal Reserve Chair Kevin Warsh during the European Central Bank Forum. Speaking at the event, Warsh said inflation risks were easing but stopped short of giving any indication about the Fed’s next policy decision.
Instead, he said officials would continue to study new economic data before making any decision on interest rates.
“Inflation risks were reduced,” Warsh said during the ECB forum discussion, a remark that markets viewed as a sign that policymakers may not need to tighten monetary policy further if price pressures continue to ease.
Even with Bitcoin’s strong recovery, investors are not celebrating too early. The market is now waiting for more economic reports, especially new inflation data and the Federal Reserve’s next policy meeting. Those events could give a clearer picture of where interest rates are heading next.
For now, the weaker-than-expected jobs report has supported Bitcoin’s rebound, but market participants are likely to continue monitoring U.S. economic data closely, as shifts in monetary policy expectations can quickly influence cryptocurrency prices.
Also Read: Crypto Markets Ignite Pump: Bitcoin Price Surges Past $61K, ETH Surges 5%
