Oil shock and weak jobs data deliver a one-two punch to risk assets

Markets experienced a double blow on Thursday with surging oil prices, driven by geopolitical tensions, and a weaker-than-expected jobs report. Oil prices jumped to $88 a barrel due to concerns about potential disruptions to the Strait of Hormuz following comments from former President Trump regarding Iran. Simultaneously, the US economy lost 92,000 jobs, a substantial miss compared to the expected gain of 59,000. This combination presents a stagflationary signal, creating a difficult situation for the Federal Reserve. Cryptocurrencies mirrored the downturn, with Bitcoin falling 3.7% and Ethereum dropping 4.2%, highlighting their correlation with traditional risk assets. Despite the sell-off, Bitcoin remains up 4% for the week, suggesting the broader trend hasn't fully reversed, but monitoring oil prices, economic data, and Bitcoin's $69K support level is crucial for investors.

(Source：Crypto Briefing)