Crypto Market Awaits US Jobs Report as Tether Explores Gold Investment

As the traditional and cryptocurrency markets await the release of the US nonfarm payroll data, reports have emerged that Tether, the company behind the world's largest dollar-pegged stablecoin, is considering a significant foray into the gold industry. According to CEO Paolo Ardoino, gold is a safer store of value than any government-issued currency and serves as a perfect complement to bitcoin. If this development comes to fruition, it could signal crypto's increasing involvement in gold's reflexive bullish cycle. The precious metal is already attracting strong global demand due to persistent inflation, fiscal concerns, and worries about central bank independence, prompting countries to reduce their US Treasury holdings in favor of gold as a safer haven. Tether's interest in gold could also boost the appeal of XAUT, a gold-backed token issued by its affiliate company TG Commodities, with each XAUT representing ownership of one fine troy ounce of physical gold. The prospects for bitcoin, ether, and the broader crypto market are likely to be influenced by the jobs report. A weak report could lead to expectations of a 25bps rate cut, potentially softening the dollar and easing Treasury yields, which would be positive for risk assets, including crypto. However, a strong report could unwind dovish positioning, send yields higher, and pressure BTC and ETH back toward their support levels. Institutional activity is also broadening beyond BTC and ETH, with DeFi Development Corp. recently purchasing over 196,000 Solana tokens and Thumzup Media acquiring $1 million worth of BTC, as well as other cryptocurrencies. In traditional markets, the MOVE index has spiked, signaling increased volatility in US Treasury yields, which could lead to financial tightening and weigh on risk assets.