What happened?
Stronger-than-expected US services data and private payrolls lifted global risk sentiment, helping Asia markets recover after yesterday’s selloff. Bitcoin bounced back above $103,000 and major cryptos rallied while equities broadly gained. At the same time, US Treasury yields and the dollar stayed firm, and traders cut the odds of an imminent Fed rate cut.
Who does this affect?
Crypto traders and investors feel the move directly, especially those holding leveraged positions around key Bitcoin levels. Equity investors, especially in tech and momentum stocks, saw relief as better growth data reduced fears about stretched valuations. Macro traders, FX players and anyone with exposure to rate-sensitive assets are watching policy expectations and the dollar closely.
Why does this matter?
Higher-for-longer rate expectations and a firm dollar can cap upside for risk assets, so even with a rebound, gains may be limited unless policy signals change. A decisive hold above $100,000 would steady crypto sentiment and invite gradual upside, but a break below could trigger swift deleveraging and bigger outflows. Overall, markets are in a selective risk-on phase where large caps and quality plays may outperform high-beta names if economic data stays resilient.