Bitcoin Mining Stocks Rally as Strong Jobs Data Lifts Market, Supports Soft-Landing Outlook
Crypto mining stocks experienced significant weekly gains, with shares of Riot Platforms, Hive Digital, Hut 8, MARA Holdings, and Bitfarms rising between 13% and 28%. This rally was driven by a favorable macroeconomic outlook supporting the US Federal Reserve's soft-landing narrative. A better-than-expected US nonfarm payrolls report indicated the economy added 147,000 jobs in June, reducing the unemployment rate to 4.1%. Despite some retracement in mining stocks on Thursday, VanEck’s Digital Transformation ETF rose by 3.2%. The broader market also saw gains, with the S&P 500 and Nasdaq reaching new all-time highs. Economists linked a drop in workforce participation to an immigration crackdown. While immediate rate cuts seem unlikely, the macro environment remains conducive for potential cuts, benefiting digital assets through lower interest rates and improved risk sentiment.
