Weak jobs report kills rate hike fears, crypto short squeeze ignites — long Bitcoin and Solana
The U.S. job market just had its weakest month in years, which means the Federal Reserve is less likely to raise interest rates. That news sparked a massive crypto rally that forced skeptical traders to buy back in, breaking a long streak of money leaving bitcoin funds.
Idea
The June jobs report showed the U.S. economy adding a mere 57,000 jobs, effectively killing the threat of a near-term interest rate hike. When interest rates stay low, investors feel more comfortable moving money into riskier assets. That dynamic—paired with Fed Chair Warsh's recent comments on cooling inflation—has created a perfect storm for crypto. Bitcoin broke above $60,000 and forced bearish traders to cover their positions, while mainstream investors finally stopped pulling money out of bitcoin ETFs after 10 straight days of outflows.
What happened since
| Symbol | Dir | T+1 | T+5 | T+20 |
|---|---|---|---|---|
| ETH | LONG | +0.29% ✓ | -2.03% ✗ | — |
| BTC | LONG | +0.80% ✓ | +0.16% ✓ | — |
Price change since publication · updated Jul 11