Bitcoin Climbs After Soft U.S. Jobs Report Fuels Rate-Cut Bets

Bitcoin traded higher on Thursday after a softer-than-expected U.S. employment report boosted expectations that the Federal Reserve could start cutting interest rates later this year, a tailwind for liquidity-sensitive assets. Data released by the Bureau of Labor Statistics showed the U.S. added 57,000 nonfarm jobs in June, down from a revised 129,000 in May. The unemployment rate ticked down to 4.2% from 4.3%. Average hourly earnings rose 0.3% on the month and 3.5% from a year earlier. The report also lowered April and May payroll estimates by a combined 74,000 jobs, signaling hiring was weaker than previously thought. Labor force participation fell to 61.5% from 61.8%, indicating fewer Americans were working or actively seeking work. Job gains were concentrated in professional and business services, health care, and social assistance. Leisure and hospitality lost 61,000 jobs, pointing to weaker-than-usual seasonal hiring. Markets took the figures as supportive of a less restrictive policy path. U.S. Treasury yields declined across the curve, with the policy-sensitive two-year yield falling alongside the benchmark 10-year. The U.S. Dollar Index weakened as traders repriced the interest-rate outlook. Crypto assets benefited from the shift, with Bitcoin and Ether rising as investors moved toward risk assets. The data reinforced expectations the Fed could begin easing if upcoming inflation readings continue to cool. While the jobs report alone is unlikely to dictate the Fed's next move, it adds to evidence the labor market is losing momentum gradually rather than overheating. Attention now turns to inflation catalysts, including the Consumer Price Index and Personal Consumption Expenditures data, for signals on the timing of a first rate cut. In sum, the U.S. economy added 57,000 jobs in June and saw April-May payrolls revised down by 74,000. The combination of softer hiring, lower Treasury yields, and a weaker dollar helped lift Bitcoin, strengthening the case for potential Fed rate cuts if inflation continues to ease.