Market Scales Back Bets on Near-Term Fed Easing

Unexpected strength in unemployment figures has cooled traders' expectations for imminent interest rate cuts. Data came in hotter than anticipated, shifting the narrative around monetary policy. This realignment is reshaping positions across risk assets—including crypto markets sensitive to rate environment shifts.

As the Fed's path becomes less dovish in the near term, capital flows are recalibrating. Traders are reassessing the timeline for monetary easing, which typically acts as a tailwind for alternative assets seeking yield or growth. The stronger labor market reading removes urgency from the rate-cut narrative that had dominated sentiment just weeks ago.