Bitcoin Hits New July High Above $62K After Weak US Jobs Data
Bitcoin surged nearly 4% in two days as soft US labor data fueled hopes for Federal Reserve rate cuts.
Bitcoin climbed above $62,000 on Wednesday, posting a fresh July high and extending a two-day rally that pushed daily gains to nearly 4%, according to Cointelegraph. The move came as weak US labor-market data stoked investor expectations that the Federal Reserve could pivot toward easing monetary policy sooner than previously anticipated.
Soft employment figures typically signal slowing economic momentum, which in turn reduces upward pressure on inflation — the primary driver behind the Fed's aggressive rate-hike cycle in recent years. Traders interpreted the data as a green light for risk assets, with Bitcoin among the clearest beneficiaries given its historical sensitivity to liquidity conditions and interest-rate expectations.
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The rally marks the second consecutive day of gains for Bitcoin in July, a month that had previously struggled to establish bullish momentum. Market participants appear to be positioning around the thesis that a more dovish Fed stance would weaken the US dollar and make scarce, non-yielding assets like Bitcoin more attractive relative to cash and short-term Treasuries.
While a single data point rarely dictates Fed policy, the jobs report added to a growing body of evidence suggesting the labor market is cooling from its post-pandemic highs. Analysts caution that Bitcoin's price moves remain volatile and that a single macro catalyst rarely sustains a trend without follow-through from additional economic releases or institutional demand.
Continue reading at Cointelegraph.
