Bitcoin Rebounds on Weak U.S. Employment Data

On Friday, July 7th, the cryptocurrency market saw significant recovery following weak macroeconomic data from the United States. The employment report for July revealed a loss of 23,000 jobs, well below the initial estimate of 85,000 new hires. While the unemployment rate dropped to 4.1%, this underwhelming result has fueled expectations that the Federal Reserve (Fed) may adopt a less aggressive stance on interest rates in coming months. This outlook benefits riskier assets such as Bitcoin, reducing the likelihood of increases in rates that could otherwise dampen demand for these investments. Additionally, indications of growing demand for cryptocurrencies, with major wallets accumulating over 20,000 bitcoins since July 29th and steady inflows into U.S.-listed Bitcoin ETFs, also contributed positively to the BTC's valuation. However, the market remains cautious about whether the asset will be able to sustain itself above US$65,000, a level that has been acting as resistance in recent times. A stronger rebound for these virtual currencies would depend on continued flows into ETFs and clearer signals regarding U.S. interest rate trajectories. Ethereum (ETH) gained 1.5%, while Solana (SOL) advanced 0.7%. [Source: Valor Econômico]