Rate Hike Odds Surge: How Crypto Markets Are Responding

The release of strong jobs data has led to a surge in rate-hike odds, with markets now leaning towards a more hawkish Federal Reserve outlook. However, this development is not as negative for the crypto market as it may seem.

According to recent economic indicators, inflation remains above the 2% target, and the U.S. labor market continues to hold up well, with job gains beating expectations and unemployment staying steady at forecast levels.

This shift in narrative has been further reinforced by the ongoing debasement trade, with Bitcoin gaining strength against gold as a macro hedge. Institutional flows into BTC ETFs have also increased significantly, with $1.25 billion in net inflows so far this year.