Weak jobs report kills rate-hike fears — accumulate Bitcoin on the relief rally
The June jobs report came in shockingly weak, which actually gave markets a sigh of relief because it means the Federal Reserve is unlikely to raise interest rates. This combination of a cooling economy and a friendlier Fed is already pushing investors toward assets like Bitcoin.
Idea
The U.S. economy only added 57,000 jobs in June, roughly half of what experts expected. According to Bloomberg, this immediately dimmed expectations for future Fed rate hikes, causing bonds to rally. Reuters highlights that this cooling data effectively 'buys the stock market more time' by reducing pressure on the Fed. Because risk assets like Bitcoin thrive when interest rate hike fears fade, Cointelegraph notes Bitcoin has already tapped a new monthly high above $62,000 on this exact news. The combination of a weak labor market and a Fed forced to back off suggests a tailwind for risk assets, making this an opportune moment to ride Bitcoin's relief rally.
Advanced analysis
Can a near-zero MACD histogram and a -34.6 Williams %R close the gap before Bitcoin's fragile $20 EMA cushion gives way?
What upcoming macroeconomic release could reignite the Fed-pivot narrative that underpins Bitcoin's relief rally thesis?
Does a 57,000-jobs print give Bitcoin enough macro fuel to sustain a relief rally beyond the initial $62K pop?
Key details
Community
News sources
- Bonds Rally as Weak Jobs Report Dims Fed Rate-Hike Expectations — Bloomberg
- U.S. economy added 57,000 jobs in June, less than expected; unemployment rate at 4.2% — CNBC
- Bitcoin price taps new July high above $62K on weak US jobs data — Cointelegraph
- Cooling US jobs data buys the Fed and stock market more time - Reuters — Google News / Reuters