The biggest digital asset, Bitcoin (BTC) saw an uptick on Friday evening as it grew by over 5%. This comes in with United States employment data providing a boost to the risk assets industry. BTC price went on to hit the $62,000 mark leading major altcoins to rally.
Bitcoin rise sparks enthusiasm
According to reports, the US nonfarm payrolls data for April came in below expectations. This indicated some weakness in the labor market. However, it completely aligns with the Federal Reserve’s take on cutting interest rates.
It mentioned that economists anticipated 243,000 new jobs but only 175,000 were added over the period. The current figure shows a heavy difference from March’s revised data of 315,000. It added that the unemployment rate for April stood at 3.9%. It is slightly higher than what was expected.
Bitcoin went through a massive correction period as its price fluctuated between the $56,000-$72,000 price range. The recent surge has helped BTC to wipe out its previous decline yet it is down by 7% in the last 30 days.
BTC stands tall on the year to date (YTD) index. It is up by 46% on the metrics. Bitcoin is trading at an average price of $61,728, at the press time. Its 24 hour trading volume is down by 23% to stand at $31.5 billion. The biggest crypto holds a market cap of over $1.2 trillion.
What’s next?
Regarding BTC’s price movement, commentators showed hope that higher levels would serve as support. This indicates that the recent dip to two-month lows was likely a temporary reaction.
Popular trader and analyst Rekt Capital noted that Bitcoin was nearing the end of a “danger zone” associated with each block subsidy halving event.
Interest rates and the US dollar have been on the rise in 2024, contrary to previous market expectations of rate cuts by the Federal Reserve. While Fed Chair Jerome Powell dismissed the idea of rate hikes, continued strong job growth and inflation could force it to take some measures.