Sharp Slowdown in US Employment Ignites Bitcoin: $61,000 Level Surpassed

Non-farm payroll data in the US significantly missed expectations, weakening rate hike expectations in the markets while enabling the Bitcoin (BTC) price to hold above $61,000.

The latest data from the United States economy revealed a significant slowdown in the labor market. According to the June non-farm payrolls report, only 57,000 new jobs were created in the country. This figure fell far short of the economists’ expectation of 110,000, causing surprise in the markets.

This low data point, coming after an increase updated to 129,000 in May, could increase pressure on the US Federal Reserve (Fed). Although the unemployment rate fell to 4.2 percent, the main reason for this decline was the drop in the labor force participation rate to 61.5 percent. In other words, fewer people actively seeking work kept the unemployment figure low on paper.

Fed Interest Rate Expectations and the Cryptocurrency Market

Despite “We Are Hiring” signs hanging in business windows, official data proves that employment appetite is waning. This situation was welcomed by the cryptocurrency and stock markets. Following the data release, Bitcoin (BTC) price gained 4 percent in the last 24 hours, surpassing the $61,000 threshold. Nasdaq 100 futures also responded with a 0.7 percent increase.

Markets anticipate that the Fed could soften its hawkish stance following the weak employment data. According to CME FedWatch data, the probability of a rate hike by September has dropped from 65 percent to 50 percent. Although rising energy prices and inflationary pressures challenge the Fed, this sudden braking in monetary policy strategies could reshape the outlook.