Weak jobs report sinks the dollar and fuels a crypto short squeeze — ride the Bitcoin momentum
A terribly weak jobs report just killed the chance of the Fed raising interest rates, which is crushing the value of the U.S. dollar. At the same time, big institutional money is flooding back into Bitcoin, creating a perfect storm for crypto prices to climb as the dollar weakens.
Idea
The June jobs report showing only 57,000 new positions was a massive miss that immediately forced markets to price out future Fed rate hikes. This directly caused the U.S. dollar to suffer its biggest weekly drop since April. When the dollar weakens, risk assets like crypto get a tailwind because they are priced in dollars. Layering on top of this macro tailwind, we have a powerful crypto-specific catalyst: institutional buyers just injected $222 million into Bitcoin ETFs, breaking a 10-day selling streak. This combination of a weakening dollar and fresh institutional inflows is forcing short sellers to liquidate their positions, fueling a short squeeze that is pushing Bitcoin toward $62,000 and lifting the entire crypto market.
What happened since
| Symbol | Dir | T+1 | T+5 | T+20 |
|---|---|---|---|---|
| BTC | LONG | +0.80% ✓ | +0.16% ✓ | — |
| ETH | LONG | +0.29% ✓ | -2.03% ✗ | — |
Price change since publication · updated Jul 11
Key details
Community
News sources
- US bitcoin ETFs break 10-day negative streak with $222 million worth of inflows — The Block
- Ether and solana extend gains as a short squeeze lifts bitcoin toward $62,000 — CoinDesk
- Dollar heads for biggest weekly drop since April as jobs data dims Fed hike bets — Yahoo Finance
- U.S. payroll growth slowed sharply in June, with only 57,000 jobs added — CoinDesk