The U.S. job growth for February was 151,000, matching expectations, while the unemployment rate rose to 4.1%. Bitcoin (BTC) price stabilized around $90,000 despite recent volatility. Concerns about inflation persist amid rising expectations for Federal Reserve rate cuts due to anticipated economic slowdown.

In February, the United States job growth reached 151,000, approximately aligning with analysts’ expectations. However, the unemployment rate edged up slightly to 4.1%, exceeding forecasts of 4.0%. The monthly job gains for January were revised downward, indicating a slight weakness in the labor market.

Despite the mixed employment data, the price of Bitcoin (BTC) remained stable, hovering near $90,000. Recent volatility in the market has been influenced by various factors including stock market fluctuations and discussions surrounding U.S. reserve strategies, yet BTC has managed to sustain its position following the labor report.

Market sentiment has shifted notably due to economic uncertainties. Traders have increased the likelihood of Federal Reserve rate cuts to nearly 50% by May, reflecting concerns over potential economic slowdown. This comes after reports indicated that U.S. employers recorded 172,000 job cuts in February, the highest level since July 2020, likely influenced by significant layoffs from government sector reforms.

Complicating the Federal Reserve’s position, forecasts suggest a possible GDP contraction of 2.4% for the first quarter of 2025, contrary to the anticipated growth exceeding 2%. This scenario may prompt the Fed to consider easing monetary policy to foster growth, despite persistent inflation, which was reported at a year-over-year rate of 3% in January.

In summary, while U.S. job growth remained steady in February, with figures matching forecasts, the slight uptick in the unemployment rate and lower-than-expected job gains indicate potential challenges ahead. Bitcoin’s price stability amid recent macroeconomic events reflects cautious sentiment in the market, while rising expectations for Federal Reserve rate cuts indicate broader concerns regarding economic health and inflation management.

Original Source: www.coindesk.com

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