The latest jobs report from the US Department of Labor showed that nonfarm payrolls rose by 177,000 in April, down from 228,000 in the previous month. However, this figure still beat Wall Street analysts’ expectations, putting pressure on investors’ hopes for riskier assets like Bitcoin and altcoins.
Interestingly, the unemployment rate remained unchanged at 4.2%, in line with market expectations. The market is now focusing on the possible action by the Federal Reserve (Fed) on its plans to cut interest rates, after the stronger-than-expected labor data dampened hopes for monetary easing.
The report from the US Department of Labor showed that nonfarm payrolls reached 177,000 in April, exceeding market expectations of 133,000. However, this figure represents a significant decrease compared to the 228,000 jobs created in March.
Meanwhile, the unemployment rate remained steady at 4.2%, in line with Wall Street analysts’ expectations. The labor data signaled that ongoing macroeconomic pressures, including the US-China trade war and other global factors, have weighed on the momentum of the US economy.
While this higher-than-expected job creation is seen as positive for the economy, it could be a bearish signal for the crypto market. This is because a strong labor market could lead the Federal Reserve to keep interest rates high for longer, something that digital asset investors don’t like.
The market is now awaiting further guidance from the Fed, especially after President Donald Trump warned that the economy would face a slowdown if the Fed doesn’t take steps to cut interest rates. Trump’s statement added to the uncertainty in the market, especially for investors who rely on loose monetary policy.
