Bitcoin (BTC) briefly fell below the $60,000 mark on Friday as risk assets came under heavy pressure following a stronger-than-expected US jobs report. US jobs data triggered a sharp reassessment of the Federal Reserve’s interest rate expectations, according to a x post By Kobeshi letter.
The decline coincided with a broader market selloff that wiped out nearly $2 trillion from the S&P 500.
“The S&P 500 wiped out nearly $2 trillion of market cap just hours after the third-strongest US jobs report in 18 months,” the Kobeshi letter wrote.
Bitcoin, stock markets fall after strong US jobs data
The report said investors have become concerned that economic strength could delay future Federal Reserve rate cuts. While strong employment data is traditionally considered positive for financial markets, current market sentiment appears to favor monetary easing over signs of economic resilience.
“When the Fed made its first rate cut in 2025, it was specifically due to labor market weakness,” the firm said, adding that the cut did not come because inflation had hit the Fed’s 2% target.
Concerns intensified after recent labor market data challenged the narrative that the economy is in decline. The Kobeshi letter said job vacancies in the US rose by 731,000 in April, bringing the total to 7.6 million, the highest level since May 2024.
As a result, traders have sharply adjusted their expectations for monetary policy. The report said the market now sees an increasing likelihood of additional rate hikes through 2027, a significant change from last year’s expectations for multiple rate cuts.
“We have seen the sharpest change in Fed expectations since post-pandemic stimulus. The base case shows two rate hikes by early 2027,” the Kobeissi letter said.
The changing rate outlook has increased pressure on crypto markets, which are more sensitive to liquidity conditions and investors’ risk appetite. Bitcoin is feeling the impact of macroeconomic data, now down more than 53% from its October peak and recording double-digit losses over the past week.
“Bitcoin is down 20% this week alone, with nearly $2.5 trillion lost in crypto since October 2025. The bear market gathered pace this week and crushed risk appetite,” Kobes Letter further wrote.
The report also points to multiple factors impacting equities and crypto simultaneously. These include plans by major technology companies like Meta to raise significant capital for artificial intelligence (AI) investments.
Others include the upcoming $75 billion SpaceX initial public offering (IPO), which could absorb substantial liquidity from the market.
At the time of writing, BTC is trading at $60,720, down 2.8% in the last 24 hours.
