 ▲ U.S., Bitcoin (BTC), Cryptocurrency Decline / ChatGPT-Generated Image |
Signals of a rapid cooling in the U.S. labor market have amplified expectations for a Federal Reserve rate cut, but Bitcoin prices have shown mixed movement, turning downward again after a brief surge.
According to cryptocurrency media outlet CoinGape on March 6 (local time), the U.S. Bureau of Labor Statistics announced that nonfarm payrolls fell by 92,000 in February. This figure fell significantly short of market expectations for an increase of 58,000 and marks the second monthly employment decline recorded since 2020. The unemployment rate, a key indicator of labor market health, came in at 4.4%, exceeding the forecast of 4.3%, suggesting a clear weakening of the labor market.
Substantial downward revisions to previous data were also made. The December 2025 employment figure was revised from a previously reported increase of 48,000 to a decline of 17,000, while the January 2026 figure was adjusted down from 130,000 to 126,000. Market analysis firm The Kobeissi Letter described the latest report as strong evidence that the labor market is clearly weakening. As January’s temporary rebound was revealed to be short-lived, significant changes in the Federal Reserve’s monetary policy direction are now anticipated.
Immediately after the employment data release, Bitcoin (BTC) briefly surged past the $70,000 level on heightened expectations of a rate cut. However, lacking sustained buying momentum, it relinquished most of its gains and retreated to around $69,000. Federal Reserve Governor Chris Waller previously stated that the decision on a March rate cut would depend on this employment report. As Waller has indicated he would support a cut if labor market weakness is confirmed, market expectations for policy easing are higher than ever.
The digital asset market is hoping that this employment shock will serve as a decisive catalyst to end the Fed’s tightening cycle and accelerate the onset of rate cuts. Having prioritized inflation control, the Federal Reserve now faces the new challenge of a slowing labor market. Major altcoins, including XRP, are moving in tandem with Bitcoin’s volatility while searching for direction. As labor market uncertainty grows, institutional investors are expected to accelerate portfolio rebalancing moves involving digital assets, which are classified as risk assets.
The ripple effects of the U.S. employment report have once again underscored the crypto market’s sensitivity to macroeconomic developments. Rising unemployment and declining job numbers, though negative on the surface, paradoxically raise hopes for increased market liquidity. Investors are closely watching upcoming inflation data and the Federal Open Market Committee’s rate decision while assessing the possibility of a new trading range forming. How structural changes in the labor market will affect Bitcoin’s long-term position as a store of value has emerged as a key issue for the market.
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