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Bitcoin surges past $61,000, aligning with stocks after disappointing jobs data 🚀

Bitcoin surges past $61,000, aligning with stocks after disappointing jobs data 🚀

Unemployment Data Sparks Speculation on Rate Cuts

Recent employment data in the US revealed that 175,000 jobs were added last month, falling short of the expected 243,000 increase. Alongside this, wages saw a 3.9% rise in the 12 months leading up to April, lower than the predicted 4.0% after a 4.1% boost in March.

Potential Impact on Interest Rate Decisions

The disappointing job report has led some experts to speculate on the Federal Reserve’s course of action regarding interest rate adjustments:

  • Charles Schwab UK Managing Director predicts a possible rate cut sooner in the year as a response to the weaker job market.
  • ING Bank Chief International Economist stands by a September rate cut call in light of the current economic situation.

Rise in Possibility of Rate Cuts

Following the release of the job data, traders have increased the likelihood of a rate cut in June to nearly 14%, a significant rise from the previous 6%. Moreover, the chances of a rate cut in September have surged to over 48%.

Impact on Bitcoin and Risk Assets

Lowering interest rates can have positive implications for risk assets like bitcoin:

  • Cheaper borrowing costs can attract investors towards riskier assets, potentially boosting bitcoin and other similar investments.
  • Decreased interest rates may also devalue fiat currencies, prompting investors to look for alternative stores of value like risk assets.

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Bitcoin surges past $61,000, aligning with stocks after disappointing jobs data 🚀