Key Takeaways:
Bitcoin fell after the US added 172,000 jobs in May, more than double the 85,000 expected, as strong data pushed traders to reduce bets on Fed rate cuts.
The Bureau of Labor Statistics reported Friday that nonfarm payrolls rose by 172,000 in May, nearly matching the downwardly revised 179,000 gain in April. The unemployment rate held at 4.3%, in line with forecasts, according to the data released at 8:30 a.m. Eastern time. Private payroll processor ADP reported Wednesday that employers added 122,000 jobs in May, also exceeding expectations.
The stronger-than-expected reading triggered a repricing in rate markets, with fed funds futures pushing out expectations for the first rate cut. Treasury yields jumped after the release, while the US Dollar Index strengthened, creating a headwind for Bitcoin and other risk assets. Ether also moved lower in sympathy with Bitcoin's decline.
The data reinforces a higher-for-longer rate environment that typically weighs on speculative assets. The Fed has held rates steady this year after cutting by three-quarters of a percentage point in late 2025, with policymakers emphasizing a data-dependent approach. The broader economy has shown resilience, with gross domestic product expanding at a 1.6% annualized pace in the first quarter and the Atlanta Fed's GDPNow tracker estimating growth of about 3% for the second quarter. Corporate earnings have also been strong, with S&P 500 earnings per share rising about 29% from a year earlier, according to LSEG data.
The May jobs report marks the latest in a series of economic releases that have kept the central bank on hold. Traders are now watching for the next consumer price index release on June 12 for further clues on the rate path. Until inflation data provides clearer direction, Bitcoin and other risk assets are likely to remain sensitive to each macro data point that shifts rate expectations.
This article is for informational purposes only and does not constitute investment advice.
