The economy added 172,000 jobs in May, more than double the consensus estimate. Wall Street wanted about half that. The result was a bloodbath across virtually every risk asset class as traders recalibrated Federal Reserve expectations.
The Nasdaq Composite dropped roughly 4% on June 5, its worst single-day decline in over a year. The S&P 500 fell over 2.6%, snapping a nine-week winning streak. Bitcoin slid to the $61,900 range, with some exchanges showing brief wicks below $60K.
The unemployment rate held steady at 4.3%. The CME FedWatch Tool reflected the shift immediately, with traders marking up the odds of the Fed raising rates later in 2026.
The 10-year Treasury yield jumped past 4.5%, its highest level in a year. The 2-year yield climbed to 4.16%, also a 12-month high.
Bitcoin shed roughly $2,000 in value within hours of the report. Some exchanges recorded brief dips below the $60K mark before a modest bounce. Gold also declined, underscoring a broad-based repricing of rate expectations.
Bitcoin's reaction to a US labor report highlights its integration into the broader financial system. Higher interest rates increase the opportunity cost of holding non-yielding assets like Bitcoin. When Treasuries yield 4.5%, investors need Bitcoin to appreciate by more than that just to break even on a risk-adjusted basis.