News

Analysts say Friday's weaker-than-expected US jobs report for February has reinforced expectations for a Fed rate cut, potentially pushing up risk appetite and boosting equities and crypto. But ongoing inflation risks from tariffs and supply chains remain a constraint on a policy shift. Last week's seasonally adjusted data from the U.S. Department of Labour showed that only 151,000 non-farm payrolls were added from January to February, the weakest February growth since 2019 and below the 170,000 expected by economists polled by Dow Jones. Government layoffs, shrinking federal funding, tariff uncertainty and tighter immigration policies will weigh on job growth in the coming months. These factors may lead to a slowdown in hiring, dampening economic momentum and reinforcing deflationary trends. The Fed is facing a complex policy environment: weak employment supports rate cuts, but inflation concerns from supply-side constraints and geopolitical risks make it cautious. Uncertainty may continue to weigh on crypto markets. Paul Howard, Senior Director at Wincent, said that the weaker-than-expected jobs report confirms the need for rate cuts to stimulate the economy, and that reducing the cost of deficits is a priority for the government, which would be good for risky assets such as crypto, while Kirill Kretov, Trade Automation Specialist at CoinPanel, said that rising unemployment could improve liquidity for Bitcoin and DeFi by boosting expectations for rate cuts. Liquidity. Slowing wage growth suggests easing inflationary pressures, making it more likely that the Fed will make an early shift. 55.3% of interest rate traders see the June FOMC meeting as the earliest point in the year for a rate cut, according to the CME FedWatch tool, while the Atlanta Fed's GDPNow model cuts the US economic growth rate in the first quarter to a contraction of 2.4%, which, if it comes to pass, would be the first time since the first quarter of 2022. If the forecast comes true, it will be the first deflation since the first quarter of 2022, fuelling recession fears. Analysts said global economic uncertainty had contributed to an increase in bearish positions in the derivatives market, with risk reversal indicators over the past 24 hours favouring puts, reflecting concerns about increased selling pressure. Options flows suggest optimism may have to wait until the third quarter. While $80,000 remains a key short-term support level for bitcoin, upside is limited. Until a new narrative emerges, bitcoin's correlation with the stock market may strengthen. Tariff risks remain, and volatility may increase ahead of this week's U.S. CPI and PPI data.

On 10 March, according to market information, Ether fell below $2,000, down 4.18% in 24 hours.