The crypto market is in turmoil as NFP and US retail sales fall, unemployment rises

The crypto market today, March 6, while the war in Iran continued. It was also weakened by lower US non-farm payrolls and retail sales and higher unemployment.

The price of Bitcoin (BTC) remained at $70,000 at press time. Ethereum (ETH) rose slightly above $2,000, while Ripple (XRP) held firm above $1.40.

Crypto prices reacted to the latest jobs report, which was much worse than expected. The US economy lost more than 92,000 jobs in February, the worst performance in years. Economists had expected the report to show the economy added 59,000 jobs.

The unemployment rate rose from 4.3% in January to 4.4% in February. In addition, the participation rate fell to 62%, while the average hourly wage increased by 0.4%.

These numbers show that the labor market is worsening and that trend may continue after several layoffs. For example, Amazon announced this week that it will cut more jobs in its robotics division. It has cut 57,000 jobs over the past three years. Other companies such as Target and UPS have recently cut jobs.

More data showed that US retail sales fell 0.2% in January. This is a significant number because consumer spending is the largest part of the US economy.

Therefore, in theory, these numbers are too high for the crypto market, because they could lead to the intervention of the Federal Reserve. In a recent statement, Stephen Miran, a senior Fed official, said he supported further interest rate cuts, citing the labor market.

The Fed’s main concern is that inflation could worsen as the war in Iran continues. Crude oil prices continued to rise, with Brent reaching $90 and West Texas Intermediate reaching $87. Gasoline has hit its highest point since 2024, which means inflation could soon rise again.

Polymarket data shows that traders expect one or two interest rate cuts this year. For the most part, Bitcoin and the crypto market do well when the Fed signals that it will cut rates.