# Weak jobs report kills rate hike fears, crypto short squeeze ignites — long Bitcoin and Solana

_AI-generated trading idea · LONG · BTC, ETH, SOL_

> Canonical page: https://commonquant.ai/research/for-you/weak-jobs-report-kills-rate-hike-fears-crypto-short-squeeze--5f525d0c-ab6f-4a48-83e6-d59ba36a718a

The U.S. job market just had its weakest month in years, which means the Federal Reserve is less likely to raise interest rates. That news sparked a massive crypto rally that forced skeptical traders to buy back in, breaking a long streak of money leaving bitcoin funds.

## Idea

The June jobs report showed the U.S. economy adding a mere 57,000 jobs, effectively killing the threat of a near-term interest rate hike. When interest rates stay low, investors feel more comfortable moving money into riskier assets. That dynamic—paired with Fed Chair Warsh's recent comments on cooling inflation—has created a perfect storm for crypto. Bitcoin broke above $60,000 and forced bearish traders to cover their positions, while mainstream investors finally stopped pulling money out of bitcoin ETFs after 10 straight days of outflows.

## What happened since

- **ETH** · LONG · T+1 0.2920% · T+5 -2.0268%
- **BTC** · LONG · T+1 0.8047% · T+5 0.1552%

_Price changes since publication; updated 2026-07-12T03:12:14.091457+00:00._

## Key details

- Symbols: BTC, ETH, SOL
- Timeframes: D1, H4
- Tags: \#crypto, \#macro, \#risk\_on

## Community

- Upvotes: 4
- Views: 13
- Copies: 0
- Cosigns: 0

## News sources

- [Ether, solana, dogecoin in the green after Warsh comments push bitcoin above $60,000](https://www.coindesk.com/markets/2026/07/02/ether-solana-dogecoin-in-the-green-after-warsh-comments-push-bitcoin-above-usd60-000) — CoinDesk
- [US bitcoin ETFs break 10-day negative streak with $222 million worth of inflows](https://www.theblock.co/post/407110/us-bitcoin-etfs-222-million-inflows) — The Block
- [U.S. payroll growth slowed sharply in June, with only 57,000 jobs added](https://www.coindesk.com/markets/2026/07/02/u-s-payroll-growth-slowed-sharply-in-june-adding-only-57-000-jobs) — CoinDesk

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