- Bitcoin rebounded, approaching the $62,000 per coin mark, surging nearly 5% in the past 24 hours.
- Cryptocurrency-related stocks broadly rose, with Strive up over 11%, Strategy gaining nearly 10%, and Circle rising more than 9%.
- U.S. job growth slowed markedly last month, with employers adding 57,000 jobs in June, down from 129,000 in May.
- The unemployment rate ticked down to 4.2%, though that remains slightly above the 4.1% level recorded a year earlier.
- The softer job numbers ease pressure on the Fed to raise interest rates, giving policymakers more room to hold steady through the summer.
- After the release of the jobs report, traders priced out the chance of a rate increase in September, though futures markets still show odds of a move in October.
- Bitcoin briefly surpassed $60,700 on July 2 after Warsh stated that inflation risks had diminished.
- The immediate implication of Bitcoin's rebound is that even without an explicit commitment to rate cuts, some short-covering and buying interest in risk assets could be triggered.
Bitcoin rebounded sharply, nearing $62,000 as weak U.S. job growth eased fears of imminent rate hikes. Employers added only 57,000 jobs in June, significantly below expectations, while the unemployment rate ticked down to 4.2%. This data has led investors to believe the Federal Reserve may hold rates steady this summer.1345
The soft job numbers have reduced pressure on the Fed, allowing for a more cautious approach to interest rates. Following comments from Federal Reserve Chair Kevin Warsh that inflation risks have diminished, Bitcoin briefly surpassed $60,700 on July 2, reclaiming the $60,000 psychological level. Traders have priced out the chance of a rate increase in September, although futures markets still indicate a potential move in October.8
In addition to Bitcoin's rise, cryptocurrency-related stocks saw significant gains. Strive surged over 11%, while Coinbase and Robinhood both increased by more than 8%. The overall market sentiment suggests that if inflation and employment data continue to support expectations of policy easing, crypto assets may attract further buying interest.2
The immediate implication of this rebound is clear: even without explicit commitments to rate cuts, as long as inflationary pressures remain stable, there could be increased interest in risk assets, including cryptocurrencies.
“Bitcoin has rebounded to $62,000, driven by easing fears of interest rate hikes following weak U.S. job growth data. Cryptocurrency-related stocks have also seen significant gains, reflecting investor optimism.”
