BTC/USD: Bitcoin Adds 10% in Weekend Pump After Jobs Data Fuels Bets on Risk Assets

Orange coin enjoyed tailwinds from Friday’s nonfarm payrolls — fewer employed people means risk is back on. Here’s why.

• Bitcoin prices BTCUSD shifted to a higher gear on Friday and carried on over the weekend, notching a 10% gain after the latest US economic data rekindled risk appetite. The orange coin pumped from a Friday low of $58,670 to a weekend high of $64,500 a piece. Turns out, fewer jobs created are celebrated by risk takers globally. Monday prices kicked off on an upbeat note too, eclipsing $65,000 per token.
• Why is that? Nonfarm payrolls arrived at a pace much lower than anticipated. Employers in the US added 175,000 new hires in April, undershooting estimates of 238,000. The report was cheered by investors because it was a stepping stone toward the awaited interest rate cuts — a total of three have been promised by the US Federal Reserve.
• Lower rates are generally good for risk assets, especially Bitcoin – the epitome of investment risk. When borrowing costs are relatively low, businesses are stimulated to get loans and expand their operations. Consumers are encouraged to take out their money from the bank and pursue higher, yet riskier, returns. They may also choose to borrow for housing, kids, and … crypto? All that spells good for global markets and the digital-asset industry.