Bitcoin and Asian Stocks Drop as Strong U.S. Jobs Data Tempers Rate Cut Hopes
• Bitcoin dropped 0.8% early Monday while Asian stocks took a bigger hit following strong U.S. jobs data on Friday.
• The jobs data has dampened expectations for early Fed rate cuts, with traders now pricing in 60% chance of a March cut versus over 75% previously.
• The 10-year Treasury yield has risen 15 basis points since Friday to 4.05%, signaling traders reassessing dovish Fed rate cut expectations.
• Wage gains standing at +4.1% year-over-year exceeds current inflation rates, which may compel the Fed to maintain flexibility on policy decisions.
• A continued rise in yields presents downside risk for bitcoin, although anticipation of a U.S. spot BTC ETF approval could cushion losses.