Last Friday, strong U.S. nonfarm payroll data and potential easing of U.S.-China trade tensions fueled a continued rise in U.S. stocks. 

Bitcoin slipped from 96K to 94K, while Ethereum hovered around 1,800. The meme coin $GORK surged over 50% over the weekend after catching Elon Musk’s attention. 

This week, the Federal Reserve will announce its interest rate decision, with traders pushing back expectations for a rate cut, now anticipating the earliest cut in late July, with a total of three cuts for the year.

Strong Nonfarm Payrolls, Fed to Delay Rate Cuts?

U.S. April nonfarm payrolls added 177,000 jobs, surpassing expectations of 138,000. The data reflects a robust labor market, with inflation exceeding the Fed’s target, leading to expectations that the Fed will maintain a wait-and-see stance until clearer signs of economic slowdown emerge.

Despite President Trump seizing the opportunity to pressure Fed Chair Powell, citing strong job growth as a reason not to delay rate cuts, Treasury Secretary Scott Bessent noted last week that falling two-year Treasury yields suggest the market believes the Fed’s rate cuts are too slow. However, Powell and other policymakers, caught off-guard by post-pandemic consumer price spikes, have emphasized that with inflation remaining above the 2% target, they are in no rush to act.

Ahead of Wednesday’s rate decision announcement, Powell and colleagues stressed the need to ensure that any price increases from Trump’s tariff measures do not lead to sustained consumer price hikes. They also made clear that they would intervene if the economy deteriorates. According to the CME FedWatch Tool, traders have delayed expectations for Fed rate cuts, now projecting the earliest cut in late July with a total of three cuts for the year, down from prior estimates of June and four cuts.

Bitcoin Drops to 94K, Musk’s Attention Sparks $GORK Surge

Bitcoin fell from 96K to 94K, and Ethereum remained stable around 1,800. The top ten cryptocurrencies by market cap saw slight declines over the weekend.

The weekend’s hottest topic was the meme coin $GORK, inspired by xAI’s Grok chatbot. On May 3, 2025, Elon Musk began following $GORK’s official X account and replied to a related post with a smiley face emoji. The market interpreted this as indirect support, triggering a sharp surge in $GORK’s price, with gains exceeding 50% in a single day.

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