Recent economic data from the U.S. have led to noticeable shifts in the cryptocurrency market due to investor expectations.
Economic Developments in the U.S.
This week saw significant events in the U.S. economy, including remarks from Fed Chair Jerome Powell, who emphasized monitoring inflation. He announced potential tariffs that could have inflationary effects. These measures may influence rates and, ultimately, cryptocurrencies.
Employment Data and Its Impact
Recently released U.S. employment data became an important factor influencing the market. The unemployment rate remained at 4.2%, matching expectations, while non-farm payrolls decreased to 73K from an expected 104K. This weakening in the data opens opportunities for the Fed regarding potential rate cuts.
Outlook on Fed Interest Rate Changes
Analysts suggest that if no deterioration in the labor market is observed, it might delay a possible rate cut for 2023. Investors are pricing in a 75% probability of a 25-basis point cut at the Fed's September meeting, whereas pre-release estimates placed this likelihood at 45%.
Thus, the recent U.S. employment data has shown mixed signals for the stock and cryptocurrency markets. The Fed's next steps will depend on the evolving state of the labor market.
