There were several important takeaways for the crypto market from this week's US jobs report. According to Yahoo Finance, the U.S. economy created more new jobs in February than expected, but the labor market is weakening as the unemployment rate rose for the fourth straight month and the adjustment to job growth in the previous month slowed. It is said that there were signs of.
There were 275,000 new nonfarm jobs in the labor market in February, according to figures released Friday by the U.S. Bureau of Labor Statistics. This number was significantly higher than the 200,000 increase predicted by experts. At the same time, the unemployment rate rose to 3.9% from 3.7% in January. The increase is the first in four months, and the unemployment rate is now at its highest level in two years.
Some of the main speculations regarding the cryptocurrency market include:
Fed rate cuts may come sooner than expected
The data showed rising unemployment was exactly what the Fed was trying to shore up. The possibility of an earlier-than-expected rate cut is sending shockwaves through the market as data confirms and solidifies the Fed's view. Historically, investors have relied heavily on the Federal Reserve's interest rate decisions when valuing assets. Government bonds often decline in value as interest rates fall, making Bitcoin and other assets more attractive. If interest rates are cut soon, the crypto market will benefit from stronger risk appetite and greater purchasing power.
Rising unemployment could lead to purchasing pressure
With the unemployment rate higher than estimated, U.S. jobs data showed more Americans are leaving the formal income sector. This means that many people may have lower purchasing power and perhaps also exhibit lower risk preferences. High unemployment rates can reduce day traders' purchasing power.
The sweet spot of the US economy
Bloomberg said Powell and his allies have expressed a desire for a more balanced labor market between supply and demand, and February's jobs report showed that outcome was imminent. Some investors believe the U.S. economy has reached a plateau and that further growth is possible, even if inflation is not very likely to recover. A sign of this is slowing employment and income growth.