US Jobs Data Triggers Rate Hike Fears, Bitcoin Tumbles Below $80k
Strong employment data in the US has triggered concerns that the Federal Reserve will maintain its tight monetary policy, causing asset prices to diverge. According to Woofun AI, the latest jobs numbers significantly exceeded market expectations, pushing the probability of a September rate hike to 59%.
The jump in employment data has put upward pressure on US Treasury yields, with the yield on 2-year notes rising by 7.6 basis points and the 10-year yield increasing by 3.2 basis points. The US Dollar Index also rose by 0.3%, making dollar-denominated assets more attractive.
The stronger dollar has exacerbated financing costs for crypto assets, contributing to Bitcoin's fall below $80,000. Meanwhile, gold faced downward pressure due to its non-yielding nature, with declines ranging from 1.7% to 2.2%. The crude oil market followed an independent trajectory, experiencing only a slight pullback in Brent crude prices.