Bitcoin climbed above $97,000 after a surprisingly strong U.S. jobs report, as investors adjusted expectations about interest rates. Wall Street stocks recovered from prior losses linked to Trump’s tariff announcements, though the dollar weakened significantly. Many now view Bitcoin as a potential safe-haven, especially in light of ongoing economic uncertainties linked to inflation and growth.
Bitcoin saw a slight uptick on Friday, trading above $97,000 amidst mixed economic signals. Investors are weighing a robust jobs report against previous indicators of a slowing economy. According to CoinGecko, Bitcoin had a 0.4% gain over the last 24 hours and reached over $97,800 earlier in the day, marking the highest level since late February. Meanwhile, altcoins like XRP and Solana stumbled slightly, with decreases of 0.1% and 1.6% respectively.
The U.S. economy added a surprising 177,000 jobs in April, significantly surpassing the expected 130,000, while the unemployment rate remained at 4.2%. This information comes from Trading Economics and contrasts with earlier data showing the economy had contracted for the first time in three years. Traders had previously been optimistic about possible rate cuts from the Federal Reserve, thinking the central bank might adjust its policy due to economic strains linked to President Trump’s trade tariffs.
After the jobs figures were released, confidence grew that the Fed would keep interest rates stable in its upcoming June meeting, with chances rising from 42% to 66%, according to CME FedWatch. Wall Street rallied, recovering completely from the shock of Trump’s announcement of new tariffs earlier this month. Stocks like Strategy, which has ramped up its Bitcoin buying efforts, jumped 3.4% to $395, despite facing a hefty $5.9 billion loss for the first quarter.
However, it’s important to note that the U.S. dollar remains under pressure. Allianz Chief Economic Advisor Mohamed El-Erian remarked on X, formerly known as Twitter, that the dollar is currently experiencing difficulties, leading to discussions about whether this is a cyclical issue or something more long-lasting. The U.S. Dollar Index (DXY), which tracks the dollar against other currencies, has slipped 3.7% over the last month. In contrast, gold prices surged by 3% to around $3,200 per ounce.
As trade tensions continue to threaten economic stability, opinions are shifting. Matt Mena, a crypto research strategist with 21Shares, indicated that investors are increasingly seeing Bitcoin as a safe-haven asset, akin to gold. He highlighted recent data from the PCE index indicating easing inflation, alongside GDP contraction, as pivotal factors driving this belief. Mena noted that rising fears of stagflation and recession are prompting a reevaluation, as Bitcoin is seen as a safe refuge during turbulent economic times due to its unique attributes such as being non-sovereign and capped in supply.
