Crypto Rises Alongside Stocks as Fed Pivot Bets Build

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.