Bitcoin rebounded from losses along with stock indices as strong US employment data posed a challenge to Federal Reserve interest rate cuts.
U.S. employment growth was stronger than expected in May, a figure that could potentially prompt the Federal Reserve to delay cutting interest rates.
On Friday, the U.S. Department of Labor reported that the unemployment rate soared to 4.0% for the first time since January 2022 and that nonfarm payrolls (NFP) rose by 272,000 jobs last month, exceeding economists’ forecasts.
The dollar rebounded strongly early in the U.S. trading session following stronger-than-expected employment data, while Bitcoin rose despite a decline in stock indexes.
Bitcoin follows stocks and falls.
Employment data coming out of the US has hit risky assets. mainly European and UK stock indices were red. London’s FTSE 100 index fell 37.45 points to 8,254.60 in intraday trading.
The regional Stoxx 600 index edged higher in Europe, falling 0.35% to 522 after reversing yesterday’s gains..80. Meanwhile, in New York, the Dow Jones Industrial Average started down 0.23%, and the S&P 500 index also fell. It fell 0.3%, and the Nasdaq fell 0.42%.
Bitcoin 
BTC
-0.13%
Shares were lower in Friday trading due to the slump in the stock market. The world’s largest digital asset by market capitalization was up about 0.2% over the past day and was changing hands at $71,366 at 10:08 am. According to E.T. Block’s pricing page.
ECB cuts interest rates
The European Central Bank (ECB) cut interest rates as expected on Thursday. This move by European monetary policymakers lowered the ECB’s benchmark interest rate from its record high of 4% to 3.75% since September 2023. This is the first time the ECB has cut interest rates since 2019.
The ECB’s move to cut interest rates comes after the Bank of Canada (BoC) lowered its benchmark interest rate, which had been maintained at 5% since July of last year, to 4.75% on Wednesday.
Canada was the first G7 country to ease monetary policy in the current cycle, followed by the ECB.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
