The crypto market is still pricing in aggressive rate hikes for the 2026 cycle.

So far this year, there haven’t been any rate cuts. Inflation stayed above the Fed’s 2% target in early Q1, which kept expectations for cuts low.

Then the West Asia crisis in March pushed inflation up to 3.3%, the strongest monthly reading since May 2024, further reducing the chances of rate cuts.

Against this backdrop, a strong jobs report sparked a market reaction. According to the Bureau of Labor Statistics (BLS), the US economy added 115,000 jobs in April, well above expectations of 65,000.

Unemployment came in at 4.3%, in line with forecasts. In short, the U.S. labor market is still holding up well, with job gains beating expectations and…