Crypto Shows Relative Strength Despite Rising Rate-Hike Bets as Funds Shift From Stocks

Forecast Trend Report by Period

Stronger U.S. employment data lifted expectations for another interest-rate increase, but cryptocurrencies led by Bitcoin held up relatively well, an analysis showed. Some money flowing out of stocks and gold appears to be moving into digital assets.

Crypto market maker Wintermute wrote on X on September 8 that digital assets typically weaken alongside other risk assets when expectations for rate hikes rise. Last week, however, they delivered the strongest performance among major asset classes except crude oil.

U.S. nonfarm payrolls for August, released on September 5, rose by 162,000, far exceeding market expectations of about 53,000. That lifted the probability of a September rate hike to around 60%, and Bitcoin briefly dropped from $82,400 to below $80,000. Even so, it still gained 3.45% for the week.