Bitcoin briefly tips $60K, stocks decline as strong labor data fuels hawkish Fed expectations

• Bitcoin briefly fell below $60,000 as a stronger-than-expected US jobs report triggered a broad risk-off move across financial markets.
• The jobs report had a similar effect on the stock market, with the S&P 500 erasing nearly $2 trillion in value hours after the announcement.
• BTC has declined over 20% in the past week, erasing over 50% of its value since its October high.

Bitcoin (BTC) briefly fell below the $60,000 mark on Friday as risk assets came under heavy pressure following a stronger-than-expected US jobs report. The US jobs data triggered a sharp repricing of Federal Reserve interest rate expectations, according to an X post by The Kobeissi Letter.

The decline coincided with a broader market sell-off that wiped nearly $2 trillion from the S&P 500.

"The S&P 500 just erased nearly -$2 TRILLION of market cap just hours after the 3rd strongest US jobs report in 18 months," The Kobeissi Letter wrote.

Bitcoin, stock market plunges following strong US jobs data

The report noted that investors have become increasingly concerned that economic strength could delay future Federal Reserve rate cuts. While strong employment data is traditionally viewed as positive for financial markets, current market sentiment appears to favor monetary easing over signs of economic resilience.

"When the Fed made their first rate cut of 2025, it was specifically because of labor market weakness," the firm stated, adding that the cut was not because inflation hit the Fed's 2% target.

Concerns intensified after recent labor market data challenged the narrative of an economy in decline. The Kobeissi Letter noted that US job openings rose by 731,000 in April, bringing the total to 7.6 million, the highest level since May 2024.

As a result, traders have sharply adjusted their expectations for monetary policy. The report added that markets now see a growing possibility of additional rate hikes through 2027, marking a significant shift from earlier-year expectations of multiple rate cuts.

"We have seen the most hawkish shift in Fed expectations since post-pandemic stimulus. The BASE case shows two rate HIKES by early 2027," The Kobeissi Letter stated.

The changing rate outlook has added pressure to crypto markets, which are more sensitive to liquidity conditions and investor risk appetite. Bitcoin continues to feel the effects of macroeconomic data, now down over 53% from its October peak and posting double-digit losses over the past week.

"Bitcoin is down 20% this week ALONE, with crypto erasing ~$2.5 trillion since October 2025. The bear market gained momentum this week and crushed risk appetite," The Kobeissi Letter further wrote.

The report also pointed to several factors weighing on equities and crypto simultaneously. These include plans by major technology companies such as Meta to raise significant capital for artificial intelligence (AI) investments. 

Others include the upcoming $75 billion SpaceX initial public offering (IPO), which could absorb substantial liquidity from the market.

BTC is trading at $60,720, down 2.8% in the past 24 hours, at the time of writing.