Strong US Jobs Data Boosts Rate Hike Odds, Crypto Prices Take Hit
The US jobs data released on Thursday has had a significant impact on the stock market, particularly for Coinbase (COIN) and Robinhood (HOOD). The strong employment numbers have revived expectations of a Federal Reserve rate increase in September, with traders estimating a 60% probability.
According to the CME FedWatch tool, the chances of a September rate hike were sharply raised after the report. However, it's not confirmed yet, as officials will receive more inflation evidence before making their decision. The Federal Open Market Committee meets on September 15-16 and will announce its decision and updated projections on September 16.
The strong US jobs data also had a negative impact on cryptocurrency prices. Bitcoin (BTC) fell by 1.81% to $79,558, Ethereum dropped by 2.16% to $2,448, and XRP declined by 3.90% to $1.40.
The losses were attributed to the higher interest rates, which can pressure cryptocurrencies as they raise yields on safer assets and reduce speculative demand. However, resilient trading volumes may help Coinbase and Robinhood if volatility increases, even when token prices decline.