CoinDesk
The U.S. economy added 172,000 jobs in May, nearly double the 85,000 economists had forecast, reinforcing the case for Federal Reserve rate hikes and sending a fresh headwind through risk assets. Bitcoin slid to $61,900 following the report, while the 10-year Treasury yield jumped to 4.52% — a level that historically compresses appetite for non-yielding assets like BTC.
Why it matters
The blowout payrolls print lands on top of an already resilient data stack: both the ISM Manufacturing PMI and ISM Services PMI came in above expectations this week and remained in expansionary territory. The unemployment rate held at 4.3%, in line with forecasts, removing any softness the Fed could use to justify a pause. Taken together, the data sharply narrows the window for rate cuts in 2024 and extends the period of elevated real yields that has weighed on Bitcoin since late 2022.
Market impact
The immediate cross-asset read is unambiguously bearish for crypto. Nasdaq 100 futures fell 1.2%, oil edged lower at $94 per barrel, and gold dropped 1.1% to around $4,400 per ounce — risk-off across the board. Bitcoin's correlation with rate-sensitive tech assets means sustained Treasury yield pressure above 4.5% is a structural drag. Traders will now watch the June FOMC meeting for any shift in the dot plot, and any further upside surprise in CPI or PCE data could accelerate the repricing.
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