Bitcoin price has increased beyond 62,000 USD. The growth was catalyzed by the recent US jobs market report. It suggests a looser labor market, which could be good news for the Federal Reserve.
The price recovery that BTC has experienced comes after a period of correction fueled by market and regulatory uncertainty.
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Bitcoin shows signs of recovery after US labor data
The U.S. Bureau of Labor Statistics showed the unemployment rate rising slightly to 3.9%. This contradicts expectations that the unemployment rate will stabilize at 3.8%. The rise in unemployment did not prevent growth in nonfarm payrolls. It added 175,000 jobs last month, though less than the forecast of 243,000.
Among major labor groups, the unemployment rate for adult men (3.6%) increased in April. The rate for blacks (5.6%) fell, offsetting an increase in the previous month. Unemployment rates for adult women (3.5%), adolescents (11.7%), whites (3.5%), Asians (2.8%), and Hispanics (4/8%) for saw little change during the month.
Written report.
Despite these mixed signals, the market reaction was still surprisingly positive. Bitcoin quickly rose above the key threshold of $60,000 to reach an intraday high of $62,150 at the time of writing by BeInCrypto.
Analysts attribute Bitcoin's bullish price response to several factors. Primarily, the currency is often seen as a hedge against market instability and inflation. As the US dollar index (DXY) fell to around 104.6, Bitcoin gained momentum, underscoring its Vai as a counterweight to traditional fiat currencies.
Bitcoin price evolution. Source: TradingViewThe mixed jobs data also appeared to reinforce the notion of a "soft landing" for the US economy, easing concerns about the possibility of a sharp downturn in the labor market. This view is reinforced by adjustments to federal funds, which now project two rate cuts by 2024, doubling expectations.
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