From Investing.com: 2024-06-10 14:56:24

Since the release of better-than-expected U.S. jobs data on Friday, and have been facing pressure as hopes for a Federal Reserve rate cut in September diminish. Despite the drop, Singapore’s QCP Capital sees this as a buying opportunity in the cryptocurrency market.

The U.S. economy added 272,000 jobs in May, surpassing the estimated 182,000 jobs and the previous month’s reading of 165,000. With the unemployment rate at 4% and hourly earnings up by 0.4%, the likelihood of a Fed rate cut in September decreased to 60%.

JP Morgan and Citi have retracted their forecasts for a July Fed rate cut, potentially shifting towards rate hikes. Bitcoin and Ethereum both experienced drops post-jobs data release. QCP Capital points out the struggle the Fed faces in keeping rates high amidst global rate cuts.

As the ECB and Bank of Canada recently cut rates, global central banks may follow suit, including the Fed. This could lead to increased market liquidity and drive demand for alternative investments like cryptocurrencies. In such a scenario, a Fed rate cut could be imminent, supporting a case for investing in cryptocurrencies.

Read more at Investing.com: Bitcoin and Ethereum down; Is now the time to buy? By Investing.com