Weak jobs report kills rate hike fears — Bitcoin and bonds rally together
The latest jobs report was shockingly weak, which paradoxically helped both bonds and Bitcoin. With the economy slowing down, investors believe the Federal Reserve will stop raising interest rates, making riskier assets like crypto more attractive.
Idea
The June jobs report showed only 57,000 new positions, far below the expected 115,000. This instantly killed market expectations for a Fed rate hike, causing a massive bond rally as yields dropped. Cryptocurrencies thrive when borrowing costs are expected to stay low, and the news immediately pushed Bitcoin firmly above $61,000. By combining the weak labor data with the bond market rally, we have a clear macroeconomic signal that the central bank is done tightening, which historically provides a massive tailwind for digital assets.