Hot US May Jobs Data Triggers Risk-Asset Rout; Bitcoin Slips Below $62,000

A stronger-than-expected US employment report jolted markets, sparking a broad selloff across risk assets from big-tech shares to cryptocurrencies as investors reset expectations for the Federal Reserve's path. The economy added 172,000 jobs in May, far above forecasts of roughly 80,000 to 85,000. The unemployment rate was unchanged at 4.3%. In the wake of the release, the Nasdaq Composite fell about 4% to 4.2% on June 5, marking its steepest one-day drop in more than a year. The S&P 500 slid more than 2.6%, ending a nine-week winning streak. Treasuries sold off sharply. The 10-year yield pushed above 4.5%, the highest level in a year, while the 2-year yield rose to 4.16%, also a 12-month high. The CME FedWatch Tool showed traders quickly lifting the implied odds of the Fed raising rates later in 2026. Bitcoin, which had been trading above $63,000 ahead of the report, dropped roughly $2,000 within hours to around $61,900. Some venues showed brief wicks below the $60,000 level before a modest rebound. Gold fell as well, signaling a broad repricing of rate expectations rather than a straightforward shift from stocks into traditional havens. For crypto investors, the move underscored how closely digital assets now track macro catalysts. As crypto becomes more embedded in the financial system, it has grown increasingly sensitive to the same forces driving traditional markets. The rate channel is clear: higher yields raise the opportunity cost of holding non-yielding assets. Bitcoin offers no dividends, coupons, or cash flow. With Treasuries yielding about 4.5%, investors need to expect enough Bitcoin appreciation to clear that hurdle on a risk-adjusted basis. Over the past year, bitcoin rallies have tended to coincide with rising expectations for rate cuts, while pullbacks have followed when those expectations faded.