A whale investor significantly increased its long positions on Bitcoin and Solana, deploying more than $70 million after recent U.S. jobs data signaled potential easing in Federal Reserve policy tightening. Alongside these bets, the trader opened a 10X leveraged short position on Hyperliquid’s token (HYPE), bringing the total exposure above $78 million.

The timing of these moves coincided with a relief rally sparked by the softer labor market figures. Typically, weaker job numbers reduce the likelihood of aggressive Fed rate hikes, encouraging risk-taking across crypto and equity markets. Bitcoin climbed toward the $62,000 mark, supported by easing rate hike fears, while global stock futures showed modest gains.

Market sentiment remains cautious, however, since the probability of an outright rate cut has not materialized. According to the FedWatch tool, the chance of another interest rate increase before the upcoming Federal Open Market Committee (FOMC) meeting dropped sharply, but most traders expect the Fed to hold rates steady in a 3.50%-3.75% range. The minutes from the next FOMC meeting, scheduled shortly after the July 4 holiday weekend, could trigger renewed volatility.

Despite the initial gains, the whale’s position on Hyperliquid faced notable pressure, showing a significant unrealized loss as the short bet moved against expectations. This highlights the risk of a hawkish Fed stance, which could quickly reverse recent market optimism and cause additional downside.

Meanwhile, Solana attracted fresh investor interest, with smart money participants increasing bids by more than 120% within a day, especially around the $81 price level. This renewed appetite signals confidence in Solana’s near-term prospects amid broader crypto market shifts.

On the other hand, Bitcoin’s bounce to near $62,000 drew growing short interest, with over $2 billion in short positions accounting for more than half the market dominance. This buildup of bearish bets sets the stage for a potential short squeeze if Bitcoin breaks decisive resistance levels at approximately $62,300 and $65,000.

Overall, the market faces a delicate balance: the weakening labor data has relaxed fears of aggressive rate hikes, encouraging bullish moves, yet the Federal Reserve’s upcoming policy statements will be critical in determining whether this relief rally can sustain or if renewed tightening pressures might drive another sell-off.