Bitcoin’s price was pushed higher on Friday as a stronger-than-anticipated jobs report was evaluated by investors, despite earlier indications of an economic slowdown earlier in the week.
Bitcoin, the leading cryptocurrency by market capitalization, most recently traded near $97,000, reflecting a 0.4% rise over the past 24 hours, according to CoinGecko. Earlier in the day, it peaked above $97,800, marking its highest level since late February. Most altcoins remained relatively unchanged, with XRP and Solana declining by 0.1% to $2.21 and 1.6% to $148, respectively.
In April, the U.S. economy added 177,000 nonfarm payrolls, significantly surpassing the 130,000 jobs economists had forecasted, while the unemployment rate held steady at 4.2%, according to data from Trading Economics.
The snapshot contrasted with an earlier economic growth report from the same week, which revealed a contraction in the U.S. economy for the first time in three years. This development raised expectations that the Federal Reserve will cut interest rates, as many believe the central bank may need to support an economy potentially constrained by trade tariffs imposed under U.S. President Donald Trump.
On Friday, traders showed greater conviction that the Federal Reserve would maintain current interest rates at the end of its June policy meeting, with the probability rising to 66% from 42% just a day earlier, according to CME FedWatch data.
Wall Street Rallies Despite Strategy’s $5.9B Loss
Wall Street indices recorded gains, as both the S&P 500 and the tech-focused Nasdaq fully rebounded from the impact of Trump’s April 2 announcement of “reciprocal” tariffs. Strategy’s stock climbed 3.4% to $395 per share, even after disclosing a $5.9 billion loss for the first quarter just a day earlier, following its intensified efforts to acquire Bitcoin.
While the U.S. stock market has regained the ground it lost following Trump’s April 2 “Liberation Day” declaration, the U.S. dollar is “still trading notably weaker” compared to its level a month earlier, according to Allianz Chief Economic Advisor Mohamed El-Erian, as stated on X (formerly Twitter) on Friday.
He noted that “the currency once famously referred to as the ‘mighty dollar’ is currently experiencing a difficult phase.” This, he added, “has sparked considerable debate over whether the cause is mainly cyclical or indicative of a longer-term, secular trend.”
According to Yahoo Finance, a 3.7% decline has been recorded in the U.S. Dollar Index (DXY) over the past month, which tracks changes in the dollar’s value against a group of other major currencies. During the same period, the price of gold has increased by 3%, reaching approximately $3,200 per ounce.
Bitcoin Gains Appeal as Economic Uncertainty Grows
As Trump’s trade war threatens the current economic structure and risks pushing the U.S. economy toward a recession, more investors are viewing Bitcoin as a safe-haven asset similar to gold, according to Matt Mena, a crypto research strategist at asset management firm 21Shares, who recently shared this perspective.
He cited this week’s PCE data, which showed easing inflation in March, along with a contraction in Gross Domestic Product, as indicators reinforcing the shift in market sentiment.
He stated that “the PCE and GDP data reignited fears of stagflation and a possible recession.” In response, investors have reallocated into Bitcoin, treating it as a flight-to-safety asset amid economic uncertainty—particularly because of its non-sovereign status and limited supply.
