Kevin Warsh comments set the stage for nonfarm payrolls data to ignite BTC, gold rally: Crypto Daily

The debasement trade, where investors move money out of fiat currencies like the dollar and into “hard assets” with limited supply, such as bitcoin BTC$61,132.78 and gold, could be back in vogue if Thursday’s U.S. nonfarm payrolls data backs up Fed Chair Kevin Warsh’s latest take on inflation.

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On Wednesday, Warsh said inflation risks have come down. That comment sparked a quick reassessment of Fed interest-rate increase prospects and triggered a bounce in both the largest cryptocurrency and the precious metal. Bitcoin has already pushed above $61,000, while gold has stabilized above $4,050 after dipping to $3,942 earlier this week.

These budding recovery rallies could really accelerate if the jobs data due at 8:30 a.m. ET shows clear labor-market weakness. Economists expect a 110,000 increase in jobs for June, down from 172,000 in May, with the unemployment rate holding steady at 4.3%. Average hourly earnings are forecast to edge up to 3.5% from 3.4%.