Bitcoin prices (BTC/USD) soared by 10% over the weekend, as economic data indicated a slowdown in job growth, thus fueling investor expectations for rate cuts, which are favorable for risk assets like cryptocurrencies. On Friday, Bitcoin climbed from a low of $58,670 to a weekend peak of $64,500 after the U.S. jobs report showed fewer jobs were created in April than expected.
Investors cheered the lower-than-anticipated job additions, seeing it as a potential precursor to interest rate reductions by the U.S. Federal Reserve. Three rate cuts have been hinted at, which could bode well for risk-driven investments. When interest rates are low, businesses and consumers are more likely to borrow and seek higher returns through riskier investments, boosting sectors like cryptocurrencies.
On Monday, Bitcoin’s momentum continued, with prices briefly surpassing $65,000. Lower borrowing costs generally stimulate economic activity, encouraging businesses to expand and consumers to spend on higher-risk options like digital assets, further enhancing the attractiveness of Bitcoin and other cryptocurrencies.
