A recent US employment report has left traders and analysts scrambling to adjust their expectations for a Federal Reserve rate hike. The June payrolls came in at 57,000 jobs added, significantly below the forecast of 114,000.
The weaker-than-expected data has reduced the odds of a near-term rate cut, with the probability now sitting at around 50%. This shift in expectations is causing uncertainty across the crypto market, with some traders bracing for impact and others looking to capitalize on potential volatility.
A stronger labor market gives the Fed more room to keep interest rates higher for longer, which could lead to a stronger US dollar and increased short-term pressure on Bitcoin and major altcoins. As a result, market participants are advised to be cautious and manage their risk carefully in the coming days.