US Jobs Blow Past Forecasts, Strengthening Case for Fed Rate Hikes

The U.S. economy added 172,000 jobs in May, nearly double economists' forecasts, reinforcing expectations that the Federal Reserve will continue raising interest rates this year.

The unemployment rate held steady at 4.3%, according to data released Friday by the Bureau of Labor Statistics. The stronger-than-expected labor market data sent the 10-year Treasury yield jumping to 4.52%, while U.S. equity index futures declined, with the Nasdaq 100 down 1.2%. Bitcoin remained under pressure, trading below $62,000 as the broader crypto market nursed steep overnight losses. Live crypto prices and charts on NowPrice show how the market is reacting to the macro shift.

The robust jobs report strengthens the case for the Fed to maintain its tightening cycle, which typically weighs on risk assets like cryptocurrencies. Higher interest rates increase the opportunity cost of holding non-yielding assets such as bitcoin, and a stronger dollar often accompanies a hawkish Fed, further pressuring crypto prices. The jump in Treasury yields also reflects expectations of tighter monetary policy, which can reduce liquidity in risk-on markets.

Looking ahead, traders will focus on the upcoming Fed meeting and any guidance on the pace of rate hikes. The next consumer price index release will also be critical for gauging inflation trends. Bitcoin's ability to hold above the $60,000 support level will be key for short-term sentiment, while a break below could trigger further selling. The crypto market remains sensitive to macro data, and any signs of easing inflation or a less hawkish Fed could provide a relief rally.