Key Points
- Bitcoin’s value increases despite a drop in equity indices following strong US job data.
- The European Central Bank (ECB) cuts interest rates, following the Bank of Canada’s similar move.
Bitcoin’s value has seen a surge, despite equity indices falling in response to stronger than expected US job data.
The Federal Reserve may reconsider its plans to cut interest rates after US job growth in May exceeded expectations.
The US Labor Department reported a rise in unemployment to 4.0%, the first time since January 2022, and non-farm payrolls increased by 272,000 jobs, outpacing economists’ predictions.
Bitcoin and Equity Indices
The dollar saw a broad rebound in the early US trading session following the release of the robust employment data, and Bitcoin also experienced gains, even though equity indices were on a downward trend.
Major European and UK equity indices were in the red, with the FTSE 100 in London recording a 37.45-point decrease to 8,254.60 in mid-day trading.
The Stoxx 600 index in Europe and the Dow Jones Industrial Average in New York also saw declines.
Despite this, Bitcoin’s value increased by around 0.2% and was trading for $71,366 at 10:08 a.m. ET.
Interest Rate Cuts
On Thursday, the European Central Bank (ECB) cut interest rates as expected, lowering the ECB’s key rate to 3.75%, down from a record high of 4%, where it has been since September 2023.
This is the ECB’s first rate cut since 2019.
The ECB’s move follows the Bank of Canada’s (BoC) decision to lower its policy rate to 4.75%, the first G7 country to ease monetary policy in the current cycle, with the ECB following suit.
