Weak jobs report kills rate-hike fears — Bitcoin and crypto stocks poised to rid
Thesis
A severely underwhelming June jobs report of 57,000 new hires effectively took the threat of near-term Federal Reserve rate hikes off the table. According to Bloomberg, this immediately sparked a massive bond market rally as investors adjusted their expectations. When interest rate expectations drop, hard assets like Bitcoin become highly attractive because they don't yield interest, making their opportunity cost drop. As noted by Cointelegraph, Bitcoin immediately tapped a new monthly high above $62,000 as the jobs data hit the wires. This combination of fading macroeconomic headwinds and crypto momentum provides a strong tailwind for digital assets.
Strategy approach
Build a rule-based strategy that enters long BTCUSD on H4 when US 10-Year Treasury yields drop >2% on the day and BTCUSD breaks above its prior session high, with a 14-day max hold and an 8% trailing stop.