Crypto Rises Alongside Stocks as Fed Pivot Bets Build
Main Idea
U.S. stocks, led by Nasdaq and Russell 2000, rebounded on Monday, while Bitcoin saw a modest increase, amid shifting market sentiment and expectations of a Federal Reserve rate cut.
Key Points
1. The Nasdaq and Russell 2000 indexes rose by 1.84% and 2.35%, respectively, while Bitcoin increased by 0.74%.
2. Market sentiment shifted following a 258,000 downward revision to May and June jobs data, increasing expectations of a Federal Reserve rate cut.
3. The probability of a 25 basis point rate cut in September surged to over 90%, up from 63.1% a week earlier.
4. Wintermute’s OTC trader, Jake Ostrovskis, noted the market bounce appeared machine-driven and warned that unresolved U.S.-focused issues from last week’s selloff remain.
5. Bitcoin's options market reflected caution, with 'put demand' observed in the $105,000 to $110,000 range.
Description
A tech-led rebound lifted U.S. stocks and crypto, but analysts warn the rally may be fragile amid rate cut speculation and signs of froth.
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