As the Bureau of Labor Statistics is set to release the US jobs report today, the crypto market is bracing for increased volatility. With the US labor market showing signs of slowing, all eyes are on the nonfarm payrolls.
U.S. Jobs Report Today: What to Expect?
According to the US economic calendar, the Bureau of Labor Statistics will release the February jobs report today at 8:30 a.m. ET. The data is expected to provide a clear outlook on how the US labor market was performing before recent economic changes.
Last month, the Labor Department announced that US employers added about 130,000 jobs in January. These figures were significantly better than the expected 70,000. The January employment data implied that the labour market remained stronger, sparking doubts about a potential Fed rate cut.
Also, the number of Americans filing for unemployment benefits stayed about the same, and layoffs fell sharply in February. This also indicates that the labor market remains stable.
Now, as the February jobs report looms, traders and economists are keenly awaiting to see the data. According to economists’ predictions, the market is likely to have added around 50,000 jobs last month.
The current employment growth rate shows a decline from the previous January, which recorded 130000 new jobs. The unexpected growth in January exceeded expectations due to temporary factors from the holiday season and warmer weather, which boosted construction activity.
In addition, the unemployment rate in February is expected to stay steady at 4.3%. Meanwhile, wages are likely to keep growing faster than inflation. Last week, the jobless claims came in at 212,000, slightly below the expected 215,000, impacting the crypto market.
The latest ADP report revealed that private businesses added staff in the healthcare sector while salaries maintained their current level. The weekly count of first-time unemployment benefit claims, which serves as an indicator of layoffs, has remained at low levels.
How Will Bitcoin and Crypto Market React?
If the February jobs report comes in at 50,000 new jobs, it would signal a slowdown in the US labor market. This could raise concerns about the broader economy, but it could be a positive catalyst for the crypto market.
While a cool labor market increases chances for a Fed rate cut, it could significantly influence the market, with Bitcoin and other crypto prices seeing notable gains. However, traders will respond to the unexpected number, which will create immediate price fluctuations in the cryptocurrency market.
The crypto market currently shows a 1% decline, representing its negative state. Despite the recent crypto market surge, assets are facing increased pressure now due to the upcoming US jobs report.
The BTC price is currently at $70,936, marking a marginal fall of 1.3% in a day. Other tokens like Ethereum, XRP, and Solana have also experienced slight downfalls, sparking concerns across the market.