U.S. job growth blows past forecasts, setting stage for Fed rate hikes
U.S. job growth significantly exceeded forecasts, signaling a robust labor market that can withstand further monetary tightening. This gives the Federal Reserve a clear runway for more aggressive interest rate hikes, creating a major headwind for non-yielding risk assets like Bitcoin.
What happened
U.S. job growth significantly exceeded forecasts, signaling a robust labor market that can withstand further monetary tightening.
The read · Jun 5
Short BTC-USD as a strong jobs report gives the Fed the green light to continue aggressive rate hikes, pressuring risk assets.
Wrong if
A surprisingly soft CPI print before the next FOMC meeting could reverse the hawkish sentiment and cause a sharp rally in risk assets, invalidating this short thesis.
CoverageSource: CoinDesk · Published here FRI, JUN 5 · 8:57 AM ET · the only report in this recordHow this is decided →
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The story1 min read
The read, in fullWhy it matters
The unexpectedly strong jobs report all but guarantees the Federal Reserve will continue its aggressive rate-hiking cycle to combat inflation. Higher rates increase the opportunity cost of holding non-yielding assets like Bitcoin, likely driving capital towards safer, interest-bearing investments and putting downward pressure on BTC prices.
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