Weak jobs report kills rate-hike fears — momentum play on Bitcoin
A terrible June jobs report means the Federal Reserve is much less likely to raise interest rates. This is pushing investors out of the recent chip-stock boom and back into Bitcoin, which thrives when rate-hike fears fade.
Idea
The June jobs report was a massive miss, adding only 57,000 jobs compared to the expected 115,000. This instantly killed market expectations for a summer rate hike, which is highly bullish for risk assets like Bitcoin. At the same time, semiconductor stocks—which led the market's rally all quarter—are starting the new quarter with a steep 2-day drop. With tech looking overvalued and rate-hike fears out of the way, capital is already rotating: Bitcoin immediately tapped a new monthly high above $62K on the news. Buying crypto assets here captures the momentum of money flowing out of tech and into rate-sensitive alternatives.
Advanced analysis
What macro or technical event could push BTC's RSI below 40 and ADX above 25 simultaneously?
Does Coinbase's 20% operating margin and improving balance sheet validate the crypto-rotation thesis the jobs data ignited?