Stocks and Crypto Slightly Rise – New Momentum or Temporary 'Bubble'?

The US stock market and cryptocurrency have slightly recovered in the early session of the week, led by the technology sector. However, analysts warn that this upward trend may be fragile as macro risks remain unresolved.

Indexes #NASDAQ and #Russell2000 increased by 1.84% and 2.35% respectively, while Bitcoin only edged up 0.74%, according to data from CoinGecko.

The main reason stems from the significantly revised employment data for May-June down by 258,000, causing expectations that the Fed will cut interest rates in September to soar. CME's FedWatch tool shows the probability of a 25 basis point cut has exceeded 90%, compared to just 63% a week ago.

However, Jake Ostrovskis (Wintermute) warns that this recovery may be driven by trading algorithms, and the market is 'boiling' with high risk. He notes that many Bitcoin options contracts are skewed toward risk protection, with popular 'put' levels around $105,000–$110,000.

Uncertainty has also increased after President $TRUMP abruptly fired the head of the Bureau of Labor Statistics, raising investor concerns about political interference.

In summary, although both stocks and crypto are in the green, the market still harbors the potential for a correction if risk factors – particularly from the US – flare up again. Investors should exercise caution and closely monitor macro signals in the coming weeks.

Warning: The content is for informational purposes only and should not be considered investment advice.