Bitcoin Rises as U.S. Jobs Data Comes In Below Expectations

Bitcoin has climbed above the psychological $61,000 level today, with the move coming amid the release of the U.S. jobs data. The nonfarm payrolls notably came in well below expectations, providing little optimism about a potential rate cut.

Nonfarm Payrolls Come In Below Expectations, Bitcoin Climbs

Bureau of Labor Statistics data shows that the U.S. added 57,000 jobs in June, well below expectations of 115,000. This follows a three-month streak of overperformance, during which the U.S. added more jobs than expected. Notably, the May figures were also revised down by 43,000 jobs.

Meanwhile, the unemployment rate came in at 4.2%, below expectations of 4.3%. This signals that the labor market remains volatile despite recent signs of stability. Bitcoin rose on the back of the jobs report, which provided optimism for a rate cut, especially if the drop in hiring figures becomes a trend.

The BTC price is currently trading at around $61,500, up over 2% from an intraday low below $60,000, according to TradingView data. The leading crypto had fallen notably below $60,000 earlier in the week amid concerns about a potential Fed rate hike.

Most Fed officials, following the June FOMC meeting, had penciled in at least a Fed rate hike this year as part of their economic projections. Some of these officials had also penciled in multiple Fed rate hikes this year.

Odds of a Fed Rate Hike Fall

The odds of a Fed rate hike have fallen following the release of the U.S. jobs data, which has contributed to the rise in Bitcoin’s price. Polymarket data shows that there is now a 50% chance of a hike this year, down from 54% as of yesterday.

Bitcoin has also climbed on the back of Fed Chair Kevin Warsh’s remarks yesterday at the ECB Forum, where he declined to comment on the path for monetary policy. The Fed chair also said inflation risks were easing, signaling there may be no need to hike rates this year, as market participants expect.

Ahead of the July FOMC meeting, market participants are betting the Fed will leave interest rates unchanged, as it has at earlier meetings this year. CME FedWatch data shows an 82.4% chance that the Fed will hold rates steady, up from around 72% as of yesterday.