Weak jobs report kills rate-hike fears and sinks the dollar — ride the crypto short-squeeze on Solana
The U.S. added only 57,000 jobs in June, far fewer than expected. This killed expectations of a Federal Reserve rate hike, weakened the dollar, and ignited a major short squeeze that pushed the entire crypto market sharply higher.
Idea
The June jobs report was shockingly weak, meaning the Federal Reserve is highly unlikely to raise interest rates. According to Reuters, this pushed the dollar to its biggest weekly drop since April. A weak dollar and low interest rates are rocket fuel for crypto, which is exactly what happened next: CoinDesk reports that crypto traders who bet against the market were squeezed out, forcing Bitcoin toward $62,000 and pushing Solana up nearly 19% on the week. This combination of a falling dollar and a short squeeze gives crypto a strong floor of momentum to ride into the weekend.
What happened since
| Symbol | Dir | T+1 | T+5 | T+20 |
|---|---|---|---|---|
| BTC | LONG | +0.80% ✓ | +0.16% ✓ | — |
Price change since publication · updated Jul 11
Key details
Community
News sources
- Dollar set for biggest weekly drop since April as soft jobs data blunts Fed hike bets — Reuters
- Crypto bulls on firmer footing as U.S. rate-hike risk recedes — CoinDesk
- Ether and solana extend gains as a short squeeze lifts bitcoin toward $62,000 — CoinDesk
- U.S. economy added 57,000 jobs in June, less than expected; unemployment rate at 4.2% — CNBC