A blowout May jobs report — 172,000 new positions against an 80,000 forecast, plus 93,000 upward revisions to March and April — has significantly reduced expectations for near-term Federal Reserve interest rate cuts. When employment remains robust, the Fed has less incentive to ease monetary policy, keeping borrowing costs elevated across the economy. For crypto markets, higher-for-longer rates are a headwind: they strengthen the dollar, reduce appetite for risk assets, and raise the opportunity cost of holding non-yielding assets like Bitcoin. The unemployment rate held steady at 4.3%, reinforcing the picture of a resilient labour market. Bitcoin fell in response to the data, as traders repriced the likelihood of a 2025 rate cut and rotated toward traditional safe-haven instruments.
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