Bitcoin & Altcoins Could Rally Following Weak US Job Data

February US job data by the Labor Department showed that the nonfarm payrolls increased by 151K in February, in line with the market expectations. On the other hand, the unemployment rate comes in at 4.1%, sparking market optimism over a potential rally in Bitcoin and altcoin prices. Notably, this data is widely considered by the US Federal Reserve to gauge the economic health and decide their rate cut plans.

US Job Data: Here’s All You Should Know

The market participants eagerly awaited the Labor Department’s US Job data for insights on the potential future move of the US Federal Reserve. Notably, the latest data showed that the US nonfarm payrolls increased by 151K in February, as compared to 143K noted in the prior month. However, the number comes in lower than the Wall Street expectations of 160K.

On the other hand, the unemployment rate comes in at 4.1%, up from the prior month’s figure of 4%. Notably, the soaring unemployment rate and moderate job growth suggest that the Fed may turn dovish with its cautious approach to monetary policy. Notably, both these data marks the highest since December 2024.

Meanwhile, the crypto market, including the Bitcoin and altcoins prices, has been closely tied to the performance of the US economy. Having said that, the latest job data may boost the market sentiment. As the Federal Reserve continues to navigate the economic landscape, crypto investors will be keeping a close eye on the central bank’s next moves.

Impact Of US Job Data

The crypto market recorded a slight recovery following the US Job data. However, despite that, the global crypto market cap was down 3.31% to $2.9 trillion. BTC price recovered and hovered at the $90K mark after dropping to as low as $84,717 in the last 24 hours.

Simultaneously, the top altcoins like Ethereum, Solana, XRP, and others, also traded in the green in the last one-hour timeframe. This reflects that the US Job data has helped boost the market sentiment.

However, despite that, the CME FedWatch Tool showed that the market is betting towards no change in the Fed rate cut at their March gathering. Notably, the market now expects only two rate cuts through the year, given the recent hawkish comments by the Fed officials.

Meanwhile, following the release, the US 10-year Bond Yield fell 1% to 4.239. On the other hand, the US Dollar Index slumped 0.45% to $103.570.

What Lies Ahead For BTC & Altcoins?

Although Bitcoin and altcoin prices have recorded heavy volatile trading lately, the market remains optimistic about the future trajectory of the digital assets. For context, the first White House Crypto Summit is scheduled later today, which will be closely watched by the global market participants. Besides, President Donald Trump is expected to announce a US Bitcoin Strategic Reserve in the roundtable gathering.

Simultaneously, major developments regarding the top altcoins are also anticipated. For context, the US may lead towards a US Crypto Stockpile, where it could include altcoins like XRP, SOL, ADA, ETH, and others. This decision, if it happens, could significantly boost the digital assets’ appeal which in turn could trigger a rally in the crypto market.

In the meantime, Bitcoin and altcoins are witnessing a decline following the release of the US job data. Experts believe the current crypto market decline is due to a ‘sell the news’ event, which has occurred following the creation of the Bitcoin Reserve.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.