The unexpected rise in the U.S. unemployment rate announced yesterday raised investors' expectations for an interest rate cut in September. Major U.S. stock indexes surged across the board, with the S&P 500 Index and the Nasdaq Index reaching new highs. But yesterday was a torturous day for the crypto community. Affected by the selling pressure and panic caused by Mt. Gox officially starting to repay creditors, the top ten market capitalization tokens collapsed across the board. Currently, the Fear and Greed Index has reached 29, showing that the market has been shrouded in fear.
U.S. unemployment rate rises unexpectedly, raising expectations for September rate cut
According to CNBC, it was announced yesterday that U.S. non-farm payrolls increased by 206,000, which was better than the 200,000 expected but lower than May's downwardly revised increase of 218,000. However, the unemployment rate unexpectedly climbed to 4.1%, the highest level since October 2021.
While policymakers would like to see more progress in inflation before lowering rates, a deteriorating labor market could increase the urgency for a rate cut. Traders ramped up bets on a rate cut in September after Friday's jobs report, with the odds of a 25 basis point cut rising to around 77% from 64% a week ago, according to CME Group's FedWatch tool.
Mt. Gox officially repays, BTC is under heavy selling pressure
Yesterday was a torturous day for the crypto community. Bitcoin was under selling pressure and panic caused by the German government’s recent continuous transfer of Bitcoin and Mt. Gox officially starting to repay creditors. It fell from above 58K in the early morning to the lowest level. $53,485.
(Mt. Gox begins paying off debt in Bitcoin BTC and Bitcoin Cash BCH)
Even Ali Martinez, a currency trader who has always been bullish, has changed his view and turned bearish. He said that the current Fear and Greed Index has reached 29, showing that the market has been shrouded in fear. And he believes that Bitcoin must once again stand at the neckline of 61K to have a chance to restart the upward trend. Otherwise, there is a lack of important support below, and the key position below is already looking at 47K.
(BTC fell below 60K! Bitcoin’s head pattern is complete, should you run for your life or buy the bottom?)
No news from ETFs, ETH gives back gains since May
Ethereum also faced a downward trend yesterday, with the lowest point reaching $2,810. In the absence of further news incentives for the Ethereum spot ETF, all the gains expected by the market to be approved by the spot ETF since May were retracted.
Similarly, the top ten market capitalization tokens all collapsed and only recovered slightly after the release of the non-farm payrolls data. They did not reach new highs like the US stock market.
(BTC 55K ETH 2900! The market continues to collapse, on-chain transactions surge, and sentiment turns to fear)
This article Unemployment rate rises, interest rate cuts are expected again, and the crypto market panic spreads due to Mt. Gox selling pressure. First appeared on Chain News ABMedia.