Bitunix Analyst: Market Begins to Reassess Balance Between 'Cooling Job Market' and 'Persistent High Inflation'

**May 7th Market Brief** Market focus is shifting from the Middle East conflict itself to its downstream impact on the U.S. economy and inflation. U.S.-Iran negotiations remain ongoing, with Trump noting dialogue between the two sides over the past 24 hours was “very productive.” Concerns about further geopolitical escalation have eased significantly, pushing oil prices down from recent highs to around $95 per barrel. Yet energy pressures haven’t fully abated. Even as oil prices pull back, U.S. gasoline prices are near $4.50 a gallon—up roughly 40% from the same period last year—signaling prior supply chain and transportation cost pressures continue to feed through to end consumers. This leaves the Federal Reserve in a tricky spot: economic data is showing signs of slowing, but inflation still isn’t expected to cool quickly in the near term. The latest U.S. April “mini nonfarm payrolls” report showed 109,000 jobs added, a touch above market forecasts. While the labor market is cooling, there’s no clear slowdown yet. What the market is really focused on now isn’t whether the economy will tip into recession immediately, but whether the hiring slowdown will be enough to gradually ease wage growth and service-sector inflation—thus shaping the Fed’s next policy moves. In crypto markets: Bitcoin (BTC) has pulled back after testing $82,000, with traders eyeing liquidity support around the $80,000 level. Derivatives data shows open interest (OI) fell 5.13% over the past 24 hours. Though the 7-day cumulative funding rate remains negative, the size of the negative reading has shrunk. This signals leveraged positioning is cooling off, bearish hedging sentiment has eased slightly, but overall market mood remains cautious.