The odds of a Federal Reserve interest rate cut in September surged following a surprisingly weak U.S. jobs report, reigniting bullish sentiment across crypto markets heading into a traditionally volatile trading season.
What Happened: According to Polymarket data as of August 1, there is now a 70% chance the Fed will cut rates by 25 basis points at its September 17 meeting, a significant jump from just days prior.
Meanwhile, bets on a 50-basis-point cut stand at 6.8%.
This comes after the U.S. economy added only 73,000 jobs in July, far below the consensus estimate of 110,000.
Markets were further rattled by a downward revision of 258,000 jobs from May and June, the sharpest two-month downgrade since the onset of COVID-19 in 2020.
The unemployment rate ticked up to 4.2%, while wage growth remained stronger than expected at 0.3% month-on-month and 3.9% year-on-year.
Also Read: The $100 Billion Bitcoin Bet: How Treasury Companies Are Fueling The Crypto Run
Why It Matters: For crypto investors, these signals are meaningful.
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