Fed Rate Cut Odds Plummet Below 5%—What Does It Mean for Crypto?

The crypto market faces headwinds as expectations for Federal Reserve rate cuts evaporate. With odds now below 5%, investors are reassessing risk assets amid stronger-than-expected economic data.

June's jobs report surprised to the upside, showing unemployment dipping to 4.1%—the lowest since February. The labor market added 147,000 positions, though critics note the growth concentrated in government and healthcare sectors. "These non-productive jobs raise our trade deficits, and lead to more government debt and higher inflation," warned economist Peter Schiff.

Treasury yields jumped post-report, with the 10-year hitting 4.36%. The market reaction reflects fading hopes for monetary policy easing—a development that could drain liquidity from speculative assets like cryptocurrencies. Bitcoin and altcoins may face pressure as risk appetite wanes.