Weak jobs report kills rate-hike fears — crypto relief rally on a sliding dollar
A very weak jobs report means the Fed is much less likely to raise interest rates. That caused the US dollar to drop, which instantly pushed Bitcoin and other major cryptocurrencies higher as they become cheaper for foreign buyers.
Idea
Today's June jobs report showed only 57,000 new jobs added, far below expectations. This directly impacts the crypto market because weaker job growth pushes the Federal Reserve away from raising interest rates. When expectations for rate hikes drop, the US dollar weakens, as seen by the dollar sliding immediately after the report. Because Bitcoin and major altcoins are priced in dollars, a weaker dollar naturally lifts their value and attracts foreign buyers who saw the dollar surge earlier in the week. Connecting the weak jobs data to the sliding dollar and the existing crypto momentum from Fed Chair Warsh's comments creates a clear macro tailwind for crypto in the short term.