Crypto News
A stronger-than-expected May jobs report has knocked rate-cut expectations out of the market and dragged both Bitcoin and gold lower in tandem. Goldman Sachs now expects the Federal Reserve to hold rates steady through all of 2026, with the first cuts pushed to June and December 2027.
Why it matters
The macro regime shift is the story. Two weeks ago, the consensus question on Wall Street was when cuts would begin; today it is whether the Fed will hike again before easing. Futures are now pricing a 75.5% probability of rate hikes before year-end. For Bitcoin, that re-prices the duration trade — the speculative, forward-looking bid that thrives on easy money is the first to deflate when the policy path extends.
Market impact
Gold and Bitcoin selling together is the cleanest signal that this is a real-rates move, not a crypto-specific risk-off. When both assets move in the same direction on macro news, it means liquidity — not narrative — is driving price. The next major data point is the June CPI print; a hot reading would harden the hold-through-2026 thesis and likely keep pressure on risk assets into Q3.
Frequently asked questions
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What did the May jobs report change about Fed rate-cut expectations?
Goldman Sachs now expects the Fed to hold rates through all of 2026, with the first cuts pushed to June and December 2027. Two weeks ago the consensus question was when cuts would start; now it is whether the Fed will hike again before easing.
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Why are Bitcoin and gold falling together on this news?
When both assets sell in tandem on a macro print, it signals a real-rates move rather than a crypto-specific risk-off event. Liquidity, not narrative, is the driver — and that re-prices the duration trade across both safe-haven and speculative assets.
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What are futures markets pricing for Fed policy now?
Futures are pricing a 75.5% probability of rate hikes before year-end, a sharp reversal from the cut-expectation consensus that prevailed two weeks ago.
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Which Fed official or institution shifted their rate-cut forecast?
Goldman Sachs is the named institution that revised its outlook, now calling for the Fed to hold steady through 2026 with cuts delayed until June and December 2027.
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What is the next major data point that could extend the sell-off?
The June CPI print is the next major catalyst. A hot reading would reinforce the hold-through-2026 thesis and likely keep pressure on Bitcoin and broader risk assets into Q3.
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