Bitcoin surged beyond the $61,000 milestone, mirroring the upward trajectory of major equity indices, propelled by a lackluster U.S. jobs report that undermined the dollar's vigor.

The U.S. Labor Department's report unveiled a modest addition of 175,000 jobs in the previous month, falling short of economists' projections, which anticipated a robust increase of 243,000 positions. In tandem, wage growth registered a tepid 3.9% over the 12 months ending in April, a slight dip from the forecasted 4.0% rise following March's 4.1% uptick.

Charles Schwab UK's Managing Director, Richard Flynn, opined that the unexpected softness in the labor market might coerce the Federal Reserve into hastening rate cuts this year. He remarked, "The Fed has exhibited a penchant for gradualism in rate adjustments, but unforeseen economic frailties, as evident today, could prompt a departure from this stance. A downturn in employment figures could nudge the Fed from a leisurely pace to a more aggressive stance."

The prospect of a rate cut gained traction among analysts, echoing Flynn's sentiments. ING Bank's Chief International Economist, James Knightley, affirmed a September rate cut prediction, remarking, "Given the prevailing circumstances, we maintain our call for a Federal Reserve interest rate cut in September."

In response to the lackluster jobs data, interest rate traders revised the odds of a June rate cut to nearly 14%, a significant uptick from Wednesday's 6%, while the likelihood of a September cut surged beyond 48%.

Lowering interest rates typically invigorates risk assets like bitcoin by reducing borrowing costs, enticing investors towards higher-yield opportunities. Furthermore, diminished interest rates can erode the value of fiat currencies, including the U.S. dollar, prompting investors to seek refuge in alternative assets such as bitcoin.

The equity markets mirrored optimism, recording gains in response to the employment figures. The Dow Jones soared by 1.14%, the S&P 500 ascended by 1.11%, and the Nasdaq Composite surged by 1.92% during mid-day trading in the U.S. on Friday.

Ryze Labs analysts construed the latest jobs report as indicative of a subdued first-quarter real GDP growth in the U.S. Nevertheless, they interpreted Wednesday's Federal Open Market Committee (FOMC) meeting as adopting a dovish stance, accentuated by Fed Chair Jerome Powell's announcement of a $35 billion per month taper to quantitative tightening and the indication of a reluctance to hike rates in the foreseeable future.

"Given the removal of rate hikes from the equation and the market's already limited anticipation of cuts for 2024, we perceive this as a favorable signal for risk assets, suggesting that the harshest headwinds of stagflation might be receding," Ryze Labs analysts conveyed in correspondence to The Block.

In the wake of these developments, the bitcoin price surged by 4.2% within 24 hours, trading at $61,669 as of 11:56 a.m. ET, as reported by The Block’s Price Page.