Bitcoin Rallies 2.16% as Weak June Jobs Data Cuts Rate Hike Odds
BTC•Bitcoin climbed 2.16% today after June nonfarm payrolls rose by just 57,000 versus forecasts of 115,000, pushing unemployment to 4.2%. The weak jobs report slashed Federal Reserve rate-hike odds, buoying equity futures and fueling the cryptocurrency’s rally.
1. Weak June Jobs Data
June nonfarm payrolls increased by 57,000, significantly missing economist projections of 115,000 and down from May’s 129,000. The unemployment rate ticked down to 4.2%, just below forecasts of 4.3%.
2. Declining Rate Hike Odds
The softer employment figures sharply reduced Federal Reserve rate-hike probabilities, with traders pushing back expected tightening actions through the rest of the year. Benchmark futures on the Nasdaq-100, Dow and S&P 500 each gained over 1.5% on the report.
3. Bitcoin’s Response
Bitcoin capitalized on the dovish shift, climbing 2.16% in electronic trading. Investors cited the diminished likelihood of additional rate increases as a key catalyst for the cryptocurrency’s near-term rally.
