Strong NFP Data Dampens Crypto Market Momentum

The cryptocurrency market's recent momentum has slowed down due to the strong U.S. NFP data, which has increased concerns about a more aggressive Federal Reserve.

The jobs report showed an unexpected surge in employment growth, with over 160,000 new jobs created in August, exceeding expectations of around 55,000.

This has led to a higher probability of a rate hike at the September 16 meeting, according to the CME Group's tracker, which now assigns roughly a 60% probability to a rate hike compared to around 40% odds of rates remaining unchanged.

The strong labor market gives policymakers more room to maintain a restrictive stance while inflation concerns remain present, making it less favorable for cryptocurrencies.