Bitcoin mining companies saw a powerful rally this week, with several firms posting double-digit percentage gains as investors digested a wave of upbeat economic indicators. Shares of Riot Platforms, Hive Digital, Hut 8, Marathon Digital, and Bitfarms jumped between 13% and 28% over four trading sessions, buoyed by expectations that the Federal Reserve may be closer to engineering a soft landing for the U.S. economy.
Trading volumes remained elevated in the lead-up to the Independence Day holiday, when U.S. markets closed early on Thursday. That session was marked by a partial retracement of gains after fresh labor market data tempered some of the euphoria.
VanEck’s Digital Transformation ETF, which holds stakes in more than 20 public companies tied to blockchain and crypto infrastructure, climbed as much as 3.2% on Thursday before settling modestly lower.
Bitcoin Reacts to Strong Jobs Report
Bitcoin’s price wavered on Thursday as fresh economic data dimmed expectations for imminent interest rate cuts.
The cryptocurrency initially dipped below $109,000 after a hotter-than-expected U.S. jobs report signaled continued strength in the labor market, making the Federal Reserve less likely to ease policy in the short term.
After the data release, Bitcoin briefly rallied above $110,000 before slipping back to trade near $109,746—still up 1.4% over the past 24 hours, according to CoinGecko figures.
Broader Equity Rally Lifts Bitcoin Mining Sector
The strong performance in mining stocks tracked a broader surge across Wall Street benchmarks. Both the S&P 500 and the Nasdaq Composite closed at new record highs in the shortened trading week, bolstered by fresh labor market figures.
According to the Bureau of Labor Statistics, U.S. employers added 147,000 jobs in June—surpassing consensus forecasts—and the unemployment rate dipped to 4.1%. Although the labor participation rate fell to its lowest level in over two years, economists suggested that tighter immigration policies are likely constraining workforce growth.
Sentiment across equities and digital assets has been buoyed by resilient economic momentum and the view that inflation pressures could continue to ease, laying groundwork for more predictable monetary policy later this year.
Strategists See Room for Crypto Upside Despite Rate Uncertainty
While the stronger-than-expected hiring data has diminished prospects of a near-term interest rate cut, analysts remain optimistic about the medium-term outlook for digital assets. Matt Mena, a crypto strategist at 21Shares, said in a research note that the combination of moderating inflation and regulatory developments could sustain investor appetite.
“The broader macro picture remains supportive of rate cuts,” Mena explained, adding that the environment is typically one in which “digital assets tend to thrive.” He pointed to the potential for improving sentiment as lawmakers advance legislation like the market structure bill and the GENIUS Act, which could bring clarity to the crypto sector.
Market participants will be watching upcoming inflation reports and Federal Reserve commentary for further clues on the trajectory of rates and risk assets heading into the second half of the year.
Quick Facts
- Bitcoin mining stocks jumped between 13% and 28% this week amid improving economic data.
- U.S. job growth beat expectations, sending the S&P 500 and Nasdaq to record highs.
- Analysts say moderating inflation and potential regulatory clarity could support crypto markets despite delayed rate cuts.
