Nikkei Rises 2.5% After Weak US Jobs Data Fuels Expectations Fed Will Not Hike Rates

WHY IT MATTERS

Even though this story is about a Japanese stock index and US jobs data, it matters for crypto because all financial markets are connected. The Federal Reserve (the US central bank) sets interest rates, which influence how much it costs to borrow money. When rates are high, investors tend to move money into safer assets like bonds. When rates stay low or are expected to drop, riskier assets — including stocks and cryptocurrencies — often attract more interest. Think of interest rates like gravity for financial markets: higher rates pull money toward safe investments, while lower rates let riskier investments float higher. So when traders believe the Fed will not raise rates, it can create a more favorable environment for many types of assets, including crypto.