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What happened: Bitcoin (BTC-USD) briefly jumped to $62,000 per token on Thursday.
What's behind the move: The cryptocurrency rebounded after June's jobs report came in weaker than expected. The economy added just 57,000 jobs, well below economists' expectations of 113,000.
Bitcoin has been particularly sensitive to Federal Reserve interest rate policy. There have been growing concerns in recent weeks that the Fed may have to hike rates later this year.
New Fed Chairman Kevin Warsh signaled in Portugal on Wednesday that policymakers remain focused on bringing inflation back to its 2% target. While declining to offer forward guidance, Warsh said he was encouraged that measures of expected inflation in the bond market have moderated since his press conference earlier this month.
June's jobs report further suggests policymakers may not need to raise interest rates later this year.
"We don't have an overheating labor market, so they're not stuck in this position where maybe they want to hike," Brian Jacobsen, chief economist and strategist at Annex Wealth Management, told Yahoo Finance.
"There's enough strength in the labor market that he doesn't have to worry about the Fed needing to run to the rescue," Jacobsen added.
What else you need to know: The token plunged 20% in June, its worst monthly performance in four years, amid growing expectations of a rate hike.
Investor sentiment has also been pressured by spot ETF outflows and a shift in capital toward AI-related investments, both of which have weighed on bitcoin's performance this year.
The token is down roughly 29% year to date and about 50% from its all-time high last October.
