Jobs Report Sparks Crypto Rally as Rate Hike Chances Diminish

A recent jobs report showed a loss of 23,000 nonfarm payroll positions in July, which is the first outright contraction in months. The reading came in well below the 83,000 consensus and reversed June's downwardly revised figure. Unemployment is ticking higher.

The implications for monetary policy are significant, as the Federal Reserve under Kevin Warsh has been walking a tightrope between persistent inflation and a slowing economy. A negative payrolls print makes any September rate hike much harder to justify politically or economically.

However, the jobs report had a positive impact on asset prices, with Bitcoin rising above $65,000 at time of writing. The dollar is selling off, Treasury yields are falling, and this has led to a cautiously positive outlook for crypto in the near term.