Bitcoin steadied above $61,000 on Friday following weaker-than-expected U.S. labor market data that boosted expectations for Federal Reserve interest rate cuts. The rebound lifted sentiment across risk assets and coincided with U.S. spot Bitcoin exchange-traded funds recording $221.7 million in net inflows on Thursday, ending a 10-day outflow streak. The economy added 57,000 nonfarm jobs in June with a 4.2% unemployment rate, according to the U.S. Bureau of Labor Statistics, easing concerns that the Federal Reserve would maintain restrictive monetary policy. Lower interest rates generally benefit risk assets by reducing borrowing costs and improving liquidity across financial markets.
U.S. Jobs Data Triggers Bitcoin Price Recovery
The market reaction followed the release of June's U.S. employment report, which showed slower job creation than economists had expected. According to the U.S. Bureau of Labor Statistics, the economy added just 57,000 nonfarm jobs in June, and the 4.2% unemployment rate "changed little in June." The world's largest cryptocurrency climbed as high as $61,700 following the release of the latest U.S. employment figures before settling around the $61,000 level ahead of the Independence Day holiday.
The weaker-than-expected report eased concerns that the Federal Reserve would need to keep monetary policy restrictive, prompting investors to rotate back into risk assets. The improving macro sentiment helped Bitcoin recover from earlier weakness that had pushed the asset below $60,000 earlier in the week, with the Bitcoin price recording approximately a 3% gain over the past week. Friday's rebound also supported gains across the broader digital asset market, as Ethereum and several altcoins saw modest gains.
U.S. Spot Bitcoin ETFs Record $221.7 Million Inflows
The improving macro conditions coincided with a notable shift in institutional fund flows. According to The Block, U.S. spot Bitcoin ETFs recorded $221.7 million in net inflows on Thursday, ending a 10-day outflow streak. The rebound marked the strongest single day of inflows in roughly two months and was led by Fidelity's FBTC, which attracted $166 million, while ARKB added $91.8 million. BlackRock's IBIT was the only major fund to post outflows, losing $40.4 million.
The return of net inflows suggests institutional demand may be stabilizing as macroeconomic conditions become more supportive. Although inflows remain well below the levels seen earlier this year, analysts said breaking the outflow streak removes one of the key headwinds that had been pressuring Bitcoin prices.
Analysts Highlight Demand Stabilization Signals
According to popular crypto analyst Michael van de Poppe, "That's a slow, gradual sign that demand might be picking up momentum again." Investors are now turning their attention to upcoming inflation data and future Federal Reserve communications for additional clues on the timing of potential rate cuts. While the labor market report strengthened expectations for monetary easing, policymakers have repeatedly emphasized that decisions will remain dependent on incoming economic data, particularly inflation.
FAQ
What caused Bitcoin to hold above $61,000 on Friday?
Bitcoin steadied above $61,000 on Friday following weaker-than-expected U.S. labor market data. The U.S. Bureau of Labor Statistics reported the economy added 57,000 nonfarm jobs in June with a 4.2% unemployment rate, boosting expectations for Federal Reserve interest rate cuts and prompting investors to rotate back into risk assets.
How much did U.S. spot Bitcoin ETFs receive in net inflows on Thursday?
U.S. spot Bitcoin ETFs recorded $221.7 million in net inflows on Thursday, ending a 10-day outflow streak. Fidelity's FBTC led with $166 million, ARKB added $91.8 million, while BlackRock's IBIT posted $40.4 million in outflows.
Why do lower interest rates benefit Bitcoin?
Lower interest rates generally benefit risk assets like Bitcoin by reducing borrowing costs and improving liquidity across financial markets. Cryptocurrencies have historically performed well during periods when investors anticipate easier monetary policy.
