Traders Revise Fed Rate Cut Expectations Amid Strong Jobs Data

Impact of US Jobs Data on Fed Rate Cut Expectations

Traders have revised their expectations for future Federal Reserve rate cuts following strong US jobs data, impacting market sentiment ahead of the FOMC meeting on June 18, 2025.

The reconsideration of Fed rate cuts significantly affects cryptocurrency and traditional markets, with traders now expecting less immediate monetary easing and cautiously readjusting their positions.

Traders have adjusted their projections for near-term Fed rate cuts due to unexpected strong US economic data . Financial markets, particularly cryptocurrency assets, experienced volatility as expectations shifted. Former US President Donald Trump has advocated for lower rates, adding a political dimension. As Trump noted, “ The Fed should cut rates ” as a strategy to manage inflation and support economic growth.”

Bitcoin (BTC) and other cryptocurrencies showed negative price movements triggered by uncertainty in rate policy. Traders are speculating about when the Fed will ease, with strong jobs data cooling bets on immediate cuts. BTC recently peaked before retracing.

Market analysts, including Carlo Pruscino from CMC Markets , highlight the impact of potential sooner-than-expected cuts on cryptocurrencies like Bitcoin and Ethereum. Economic indicators and political influences contribute to current sentiment.

Expectations for imminent rate cuts have diminished, exerting downward pressure on US Treasury prices and ownership of risk assets. Strong jobs data feeds into this evolving narrative, affecting both traditional and crypto markets.

Looking forward, possible financial and regulatory outcomes from Fed actions remain unclear. Historical patterns show cryptos typically respond to rate shifts. Monitoring FOMC statements and economic indicators will be crucial for future market movements.