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Bitcoin (BTC) recorded a notable recovery on Friday, breaching the $27,000 mark once again. The flagship cryptocurrency has been propelled by the latest job data from the U.S. Labor Department.
The crypto king surged to an intraday high of $27,421 on the Bitstamp exchange, recovering from a dip that saw it touch a low of $26,519, according to data.
As of now, Bitcoin is holding its ground just above the $27,000 threshold, reflecting the bullish sentiment in the market.
Surprisingly strong jobs gains
The behemoth that is the American economy robustly welcomed an astonishing 339,000 jobs into its fold in the month of May, overshooting the projected figures by a substantial margin.
These job gains, along with upward revisions for March and April, signaled a robust jobs engine, fuelling optimism within the Bitcoin community. The figures not only surpassed the three-month average of 283,000 jobs but also saw an upward revision in April and March by 41,000 and 52,000 respectively.
Inflation remains a lingering concern
Yet, economists found themselves entangled in deciphering its potential repercussions on inflation and the Federal Reserve's ensuing policy maneuverings.
The labor market, in its current blistering trajectory, threatens to exert upward pressure on prices, thus making the Fed reinstate price stability.
Hence, there is a cloud of ambiguity over the prospect of another interest rate hike by the Fed. According to the assessment by ING Economics, in spite of the mixed sentiments reverberating from the U.S. jobs report, the market sentiment appears inclined towards the Fed forgoing a rate hike in the forthcoming month. Nevertheless, a surge in core inflation on the cusp of the Fed's decisive meeting could upset the balance.