Bitcoin Surpasses 61,000 USD as U.S. Job Growth Slows, Boosting Investor Confidence
Bitcoin has reclaimed the 61,000 USD level. The weaker-than-expected U.S. employment data has eased concerns about further Federal Reserve (Fed) interest rate hikes, improving sentiment towards risk assets.
As of 9:20 a.m. (Korean time) on Friday, Bitcoin was trading at 92,755,000 KRW (about 60,060 USD) on Bithumb, down 0.36% from the same time the previous day.
According to CoinMarketCap, Bitcoin’s price rose 2.59% to 61,308 USD, maintaining its position above the 61,000 USD mark.
On Thursday, the U.S. Labor Department reported that non-farm payrolls increased by only 57,000 jobs in June, well below market expectations. This slowdown in the job market has fueled expectations that the Fed may be less likely to implement further rate hikes, boosting investor appetite for risk assets like Bitcoin.
The Chicago Mercantile Exchange (CME) FedWatch tool indicates that the likelihood of interest rates remaining unchanged this year has increased following the jobs report, while the probability of additional rate hikes has decreased.
Brian Jacobson, Chief Economist at Annex Wealth Management, commented that the labor market is neither overheated nor rapidly deteriorating to the point where the Fed needs to take urgent action. The necessity for hasty rate hikes has diminished.
Trump Claims Ignorance of Crypto Profits, Denies Wrongdoing
Former President Donald Trump has denied any illegal activities related to reports of 1.4 billion USD in earnings from cryptocurrency ventures during his presidency.
On Thursday, Trump addressed the media at the White House, stating that he might have known, but he didn’t bother to check, when asked about the reported 1.4 billion USD in cryptocurrency earnings last year. He firmly rejected any allegations of wrongdoing, insisting that there was absolutely nothing illegal.
Responding to conflict of interest concerns, Trump asserted that he did nothing wrong. It fostered the growth of the cryptocurrency industry and ensured U.S. leadership in this sector. If it hadn’t, China would have taken the lead.
Fidelity Reports Shift of Speculative Funds from Bitcoin to Tech Stocks
Analysts suggest that short-term speculative capital is exiting the cryptocurrency market, including Bitcoin, and moving into technology stocks.
On Thursday, Jurrien Timmer, Director of Global Macro at Fidelity Investments, noted that speculative funds initially flowed into Bitcoin, then gold, driving up gold prices, but are now concentrating on tech stocks.
Timmer cautioned that continued Fed tightening and a strong dollar could put pressure on risk assets, including Bitcoin.
Robinhood CEO: RWA is the Future of Crypto, Meme Coins Lack Significance
Experts predict that the tokenization of real-world assets (RWA) will be a key growth area in the cryptocurrency industry.
On Thursday, Vladimir Tenev, Chief Executive Officer (CEO) of Robinhood, stated that traditional finance and cryptocurrency are converging, and the future of digital assets lies in RWA.
Tenev emphasized that the focus should be on bringing validated real assets on-chain, not creating tokens without real utility like meme coins. Assets without utility are unproductive. Creating hundreds of meme coins serves no purpose.
