The continued weakness in the labour market has all but guaranteed a 25 bps rate cut at the September FOMC meeting.
The U.S. Bureau of Labour Statistics published its July JOLTS report on Wednesday, revealing that job openings stood at just 7.181 million, below the estimated 7.380 million.
This marks the lowest JOLTS reading since March 2021.
The downside risk in the labour market has now become a bigger concern for the Federal Reserve than the elevated inflation levels, as also indicated by Fed Chair Jerome Powell in his last month’s Jackson Hole address.
Unsurprisingly, the CME FedWatch is now showing 98% odds of a September rate cut, also forecasting another cut later this year. There is even a 41.5% probability of three rate cuts in 2025.
This is a decidedly bullish scenario for risk assets. Crypto prices are showing bullish strength, with Bitcoin and Ethereum hitting $112,000 and $4,500, respectively. MemeCore, Four, OKB and Virtuals Protocol are also among the top crypto gainers.
Among the meme coins, SPX6900 and Dogecoin are in the green as well.
Why Crypto Prices Are Reacting Positively To July JOLTS Report?
Crypto assets tend to react positively to loose monetary policy. With the continued weakness in the US labour market, the US Federal Reserve is now forced to aggressively cut the Federal target rate and adopt quantitative easing.
For instance, the number of job openings per unemployed person just fell below 1. Simply put, there are now fewer jobs than the people looking for them.
This is a metric often cited by Fed Chair Powell, suggesting the central bank may be compelled to cut rates in order to bolster economic growth.
Unsurprisingly, the CME FedWatch reveals that two rate cuts are all but guaranteed for this year, while a third rate cut is also possible. This is a decidedly bullish scenario for crypto assets.
Crypto Prices Are Pumping, These Altcoins Are Among The Top Gainers
The Bitcoin price hit $112,000 on Wednesday after the JOLTS report release, while Ethereum climbed above the $4,500 mark.
Both BTC and ETH are on the cusp of major breakouts; however, they haven’t secured it just yet.
Solana continues to be one of the strongest large-cap altcoins on the market, trading comfortably over $200 mark.
Similarly, the Dogecoin price successfully defended the $0.20 support level, now trading at $0.216 at press time.
Ethereum ecosystem coins are showing considerable bullish strength as well, with Aave, Etherena and Pende among the top gainers. This shows excellent relative strength, indicating that these will be among the top performers once the broader market outlook improves.
Solana meme coin SPX6900 is also in the green.
Best Cryptos To Buy Now
Despite the rallying crypto prices, sidelined investors should exercise caution in making any new investment. In fact, they should wait for a weekly close above the $113,000 level for Bitcoin, and $4,500 for Ethereum, even before investing in altcoins.
However, they can buy low-cap cryptos, considering they do not show any correlation with the broader market outlook.
For instance, the new layer-2 coin, Bitcoin Hyper (HYPER), is quickly nearing the $14 million milestone in its viral presale. It is designed to tackle the poor network throughput and scalability on Bitcoin, bringing the efficiency and programmability of modern blockchains.
With utility coins finally showing strength, layer-2 coins like HYPER are among the most attractive investments. It is not without reason that whales continue to pour six-figure investments into HYPER.
Besides its cutting-edge layer-2 architecture and integration with the Solana Virtual Machine, HYPER boasts community-centric tokenomics, safe smart contracts and attractive staking rewards.
In fact, many of the early Bitcoin Hyper buyers are eying up to 100x returns from it.
Visit Bitcoin Hyper Presale
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