"Hmm will the crypto market be affected or not?"
Cryptocurrency markets should watch for some key takeaways from Friday's US jobs data as the economy created more new jobs in February 2024 than projected.
According to figures released by the Bureau of Labor Statistics, there were 275,000 new additions to the labor market, so here it can be seen that the number exceeded the 200,000 increase expected by experts by a significant margin.
At the same time, the unemployment rate increased from 3.7% in January 2024 to 3.9% and this is the first increase in four months, therefore the unemployment rate is now at the highest position in the last two years.
Following data showing that the Federal Reserve (Fed) has strengthened its view, the chance of a faster-than-expected interest rate cut sent shockwaves throughout the crypto market.
Historically, investors looking to value assets have placed a lot of reliance on the Fed's rate decision, so here it can be seen that the crypto market will benefit if interest rate cuts happen soon.
With unemployment exceeding estimates, US employment data shows that more people in the US are leaving the formal income sector and this means that the purchasing power of many people could be affected.
It should also be noted that Powell and his associated firms have expressed their desire for a greater balance between supply and demand in the labor market.
The streak, investors believe the US economy has reached a stable level where further growth is likely to occur without inflation rising again and slowing job gains and incomes are signs of that.
