Crypto Rises Alongside Stocks as Fed Pivot Bets Build

In brief

  • Nasdaq and Russell 2000 led gains Monday, while Bitcoin posted a smaller advance.
  • Revised jobs data fueled a surge in rate cut expectations ahead of the Fed’s September meeting.
  • Traders point to unresolved macro risks and rising put activity in Bitcoin as signs of caution.

U.S. stocks rebounded Monday, lifting risk assets broadly, including crypto. But analysts remain cautious, citing persistent macroeconomic uncertainty and growing signs of excess across markets.

The tech-led rally saw the Nasdaq and Russel 2000 indexes jump 1.84% and 2.35%, respectively. Bitcoin, on the other hand, saw a modest uptick of 0.74%, according to CoinGecko data. 

Market gains tracked a sharp shift in sentiment following a 258,000 downward revision…

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