The unexpected rise in the U.S. unemployment rate announced yesterday raised investors' expectations for an interest rate cut in September. Major U.S. stock indexes surged across the board, with the S&P 500 Index and the Nasdaq Index reaching new highs. But yesterday was a torturous day for the crypto community. Affected by the selling pressure and panic caused by Mt. Gox officially starting to repay, the top ten market capitalization tokens collapsed across the board. The current Fear and Greed Index has reached 29. It shows that the market has been shrouded in fear.
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ToggleU.S. unemployment rate rises unexpectedly, raising expectations for September rate cut
According to CNBC , yesterday it was announced that the number of non-farm payrolls in the United States increased by 206,000, which was better than the expected increase of 200,000, but lower than the downwardly revised increase of 218,000 in May. However, the unemployment rate unexpectedly climbed to 4.1%, the highest level since October 2021.
While policymakers would like to see more progress in inflation before lowering rates, a deteriorating labor market could increase the urgency for a rate cut. According to CME Group's FedWatch tool, traders increased their bets on a rate cut in September after Friday's jobs report, with the likelihood of a one-point rate cut rising to about 75% from 64% a week ago.
Mt. Gox officially repays, BTC is under heavy selling pressure
Yesterday was a torturous day for the crypto community. Bitcoin was under selling pressure and panic caused by the German government’s recent continuous transfer of Bitcoin and Mt. Gox officially starting to repay creditors. It fell from above 58K in the early morning to the lowest level. $53,485.
( Mt. Gox begins paying off debt in Bitcoin BTC and Bitcoin Cash BCH )
Even Ali Martinez, a crypto trader who has always been bullish, has changed his view and turned bearish. He said that the current Fear and Greed Index (Fear and Greed Index) has reached 29, showing that the market has been shrouded in fear. And he believes that Bitcoin must once again stand at the neckline of 61K to have a chance to restart the upward trend. Otherwise, there is no important support underneath, and the key position below is already looking at 47K.
( BTC fell below 60K! Bitcoin’s head shape is intact, should you run for your life or buy the dips? )
No news from ETFs, ETH gives back gains since May
Ethereum also faced a downward trend yesterday, with the lowest point reaching $2,810. Instigated by the lack of further news, the Ethereum spot ETF gave back all the gains it had made since May.
Similarly, the top ten market capitalization tokens all collapsed and only recovered slightly after the release of non-farm payrolls data, and did not continue to hit new highs like the US stock market.
