# Weak jobs report kills rate-hike fears — crypto is stealing the spotlight from AI chips

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

> Canonical page: https://commonquant.ai/research/for-you/weak-jobs-report-kills-rate-hike-fears-crypto-is-stealing-th--f63191d2-6ca8-4951-aa37-cf0ca1f05a6e

The June jobs report was so weak that the Fed is now unlikely to raise interest rates, which has sparked a massive rally in bitcoin. With $221 million flowing into bitcoin funds on the same day tech stocks are losing steam, this looks like the beginning of a rotation out of AI stocks and back into crypto.

## Idea

A terrible jobs report (only 57,000 jobs added) has forced markets to abandon the idea of a Fed rate hike, which has immediately triggered a crypto relief rally. At the same time, semiconductor and memory stocks—leaders of the AI boom—are losing momentum. This combination points to a classic market rotation: investors are taking profits from over-extended AI stocks and moving into digital assets. The thesis is confirmed by the breaking of a 10-day negative streak in Bitcoin ETF inflows, showing institutional money is confidently returning to crypto.

## 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 2026-07-12T03:12:14.261464+00:00._

## Key details

- Symbols: BTC, ETH, IBIT
- Timeframes: D1
- Tags: \#crypto, \#macro, \#rotation, \#risk\_on

## Community

- Upvotes: 1
- Views: 6
- Copies: 0
- Cosigns: 0

## News sources

- [U.S. economy added 57,000 jobs in June, less than expected; unemployment rate at 4.2%](https://www.cnbc.com/2026/07/02/jobs-report-june-2026-.html) — CNBC
- [US spot Bitcoin ETFs top $200M in daily inflows for first time since May](https://cointelegraph.com/news/spot-bitcoin-etfs-222-million-daily-inflow-reverse) — Cointelegraph
- [Memory and semiconductor stocks lose momentum, bitcoin rebounds in sign of changing investor focus](https://www.coindesk.com/markets/2026/07/03/memory-and-semiconductor-stocks-lose-momentum-bitcoin-rebounds-in-sign-of-changing-investor-focus) — CoinDesk
- [Ether and solana extend gains as a short squeeze lifts bitcoin toward $62,000](https://www.coindesk.com/markets/2026/07/03/ether-and-solana-extend-gains-as-a-short-squeeze-lifts-bitcoin-toward-usd62-000) — CoinDesk

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