Weak jobs report cools rate-hike fears — Bitcoin momentum play as short squeeze triggers
A very weak jobs report means the Fed likely won't raise interest rates, which is pushing investors toward 'risk-on' assets like Bitcoin. This sparked a massive rally in crypto, forcing bearish traders to buy back in and driving fresh institutional money into Bitcoin ETFs.
Idea
The June jobs report was a massive miss with only 57,000 positions added, which instantly cooled expectations for a Federal Reserve rate hike. According to the crypto market coverage, this macroeconomic shift acted as a catalyst, pushing Bitcoin back above $60,000 and triggering a 'short squeeze' where bearish traders were forced to liquidate $281 million in positions. Compounding this upward pressure, institutional capital finally returned to the space, breaking a 10-day negative streak with a $222 million influx into U.S. Bitcoin ETFs. When a sudden macro tailwind meets forced buying and institutional inflows, it creates a sustained momentum rally.