According to the latest Fedwatch CME data, the possibility of reducing the federal backup rate in July decreased to less than 5 %, amid a better work report than expected.
This transformation can be a challenge to the encryption market. With the decrease in the probability of low interest rates, cryptocurrencies can become less attractive to investors.
The encryption faces new risks with a decrease in the risk of reducing the federal reserve rate
US jobs in June a reportIt revealed that the unemployment rate decreased to 4.1 %, decreased from 4.2 % in May and less than the unemployment rate to 4.1 %, decreased from 4.2 % in May and less than the unemployment rate to 4.1 %, decreased from 4.2 % in May and less than the expected 4.3 %.
“The unemployment rate in the United States has decreased to 4.1 % June, the lowest level since February. It is still much lower than the historical average of 5.7 %.” books.
The country’s employers added 147,000 jobs in June. This is consistent with the average number of added jobs each month in the previous year (146000).
The sectors that have seen job growth are the functions of the state government and health care. On the other hand, the federal government has witnessed job cuts.
“92 % of 147,000 jobs are supposed to be established in June were in the government, health care or social services. Manufacturing continued to lose jobs. These unproductive jobs raise our trade deficit, and lead to more books.
Despite criticism, the bond market reaction was quickly. After issuing the report, the cabinet returned for 10 years to 4.36 %. But why did this happen?
Since the economy is working well, investors are less concerned about the future and want to invest in safer options, such as US government bonds. With more people buying bonds, interest rates (revenues) rise.
Moreover, these strong economic indicators indicated that the federal reserve may have less reasons for reducing interest rates in July. CME Fedwatch shows this shift. The possibility of a rate reduction in July decreased to 4.7 %, decreasing from the chance of 25 % of the reduction.
“The risk of reducing the federal reserve rate in July-from 25 % to less than 5 % overnight. Why? The high inflation driven by customs tariffs and amazingly strong job report keeps retaining the title … now. to publish.
Since December, the Federal Reserve has remained fixed interest rates between 4.25 % and 4.5 %. This attracted a violent reaction from President Trump, who even threatened to shoot at the Federal Reserve Chairman Jerome Powell. However, Powell stood at home.
Meanwhile, this shift in price expectations can be created winds of the encryption market. High interest rates make traditional investments, such as bonds, and more attractive, and possibly pay attention to the most dangerous assets such as cryptocurrencies. Thus, low demand can be burdened with prices.
Despite the challenges in the current economic environment, there are still many bullish stimuli in the market, especially bitcoin. According to Cryptosrus, the global show of the epithelium recently increased to $ 55.48 trillion. Moreover, the US dollar has achieved its worst performance in the first half (H1) of the year since 1973.
According to Kalshi, the prediction platform, the total US debt is expected to reach $ 40 trillion this year.
Consequently, the increasing national debts and concerns about inflation and government spending may make BTC an increased gravity.
Meanwhile, the Bitcoin scheme looks closed at $ 170,000 – and he knows what will happen. FIAT expands. BTC is looking at escape, “Cryptosrus I mentioned.
Since traditional financial systems face pressure, Bitcoin and other digital assets can offer attractive options for investors who seek to diversify and protect against economic instability.
The risk of reducing the federal backup rate decreased after 5 % – what does it mean for encryption? He first appeared on Beincrypto.
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2025-07-04 09:22:00
