The crypto market remained on edge today, March 6, as the war in Iran continued. It also wavered as the US non-farm payrolls and retail sales dropped and the unemployment rate jumped.
Summary
- The crypto market wavered after the latest US non-farm payrolls data.
- A report showed that the US shed 92,000 jobs in February.
- US retail sales continued falling in January.
Bitcoin (BTC) price remained at $70,000 at press time. Ethereum (ETH) hovered slightly above $2,000, while Ripple (XRP) remained steady above $1.40.
Crypto prices reacted to the latest jobs report, which was much worse than expected. The US economy shed over 92,000 jobs in February, the worst performance in years. Economists were expecting the report to show that the economy added 59,000 jobs.
The unemployment rate rose from 4.3% in January to 4.4% in February. Additionally, the participation rate dropped to 62%, while the average hourly earnings rose 0.4%.
These numbers show that the labor market is getting worse, a trend that may continue after several layoffs. For example, Amazon announced that it was cutting more jobs in its robotics arm this week. It has slashed 57,000 jobs in the last three years. Other companies like Target and UPS have slashed jobs recently.
More data revealed that the US retail sales dropped by 0.2% in January. That is a notable figure as consumer spending is the biggest part of the US economy.
Therefore, in theory, these numbers are bullish for the crypto market as they may lead to a Federal Reserve intervention. In a recent statement, Stephen Miran, a senior Fed official, said that he supported more interest rate cuts, citing the labor market.
The main challenge for the Fed is that inflation may worsen as the war in Iran continues. Crude oil prices continued rising, with Brent moving to $90 and the West Texas Intermediate moving to $87. Gasoline jumped to the highest point since 2024, meaning that inflation may rebound soon.
Data on Polymarket shows that traders anticipate one or two interest rate cuts this year. In most cases, Bitcoin and the crypto market does well when the Fed is signaling that it will cut rates.
