Bitcoin experienced a rise in its value on Friday, in correlation with major stock market indices, following a positive US jobs report. The report highlighted the strength of the domestic economy, leading to uncertainties regarding a potential reduction in interest rates.

Bitcoin's Performance with Stock Indices

The primary cryptocurrency by market capitalization, Bitcoin, surged by 1% in the last 24 hours, hitting $68,450 at 10:55 a.m. ET. Concurrently, stocks also showed an upward trend during early US trading hours on Friday, reacting to the March jobs report. This rebound followed a poor performance on Wall Street on Thursday.

The S&P 500 index recorded a 0.6% increase, while the Dow Jones Industrial Average rose by 107 points or 0.3%. The Nasdaq Composite, which primarily focuses on technology stocks, increased by 0.8%.

Jobs Data Implications

In March, US employers added 303,000 jobs, surpassing expectations and reflecting a robust labor market despite higher interest rates. The job gains exceeded economists' projected increase of 200,000 positions. With the strong employment numbers and steady economic activity, the Federal Reserve might decide to maintain current interest rates for a prolonged period.

The CME's FedWatch tool shows that interest rate traders are 94.7% confident that the Fed will not alter rates in May. Now, the market predicts a 50.8% chance of a rate cut during the June Federal Open Market Committee meeting.

With low unemployment rates and substantial job growth, there could be upward pressure on wages and prices, potentially leading to inflation. In this scenario, the Fed could opt to maintain interest rates rather than decrease them to prevent the economy from overheating.

The existing macroeconomic scenario might generate a risk-averse attitude, which could negatively impact risk assets like Bitcoin.

Richmond Federal Reserve President Thomas Barkin proposed on Thursday that the US central bank refrain from adjusting rates until the inflation situation becomes clearer. During his speech at the Home Building Association of Virginia, Barkin recommended a cautious approach and emphasized the importance of evaluating inflation data from early 2024 before making any decisions on interest rates.