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Strong jobs data may trigger Fed tightening bearish for crypto. Weak data? Rate cut hopes could fuel a rally. Will NFP $NFP shake the market this time?

Strong job growth often boosts the U.S. dollar and risk off sentiment leading to short-term pressure on Bitcoin and altcoins. Weak $NFP NFP numbers however, can fuel expectations of Fed rate cuts driving liquidity into crypto assets. Traders closely watch these reports for market direction will the next NFP push crypto higher or lower?

Nonfarm payroll (NFP)$NFP data is a key economic indicator that impacts the crypto market. Strong job growth often boosts the U.S. dollar and risk off sentiment leading to short-term pressure on Bitcoin and altcoins. Weak $NFP NFP numbers however, can fuel expectations of Fed rate cuts driving liquidity into crypto assets. Traders closely watch these reports for market direction will the next NFP push crypto higher or lower?

Nonfarm payroll (NFP)$NFP data is a key economic indicator that impacts the crypto market. Strong job growth often boosts the U.S. dollar and risk off sentiment leading to short-term pressure on Bitcoin and altcoins. Weak $NFP NFP numbers however, can fuel expectations of Fed rate cuts driving liquidity into crypto assets. Traders closely watch these reports for market direction will the next NFP push crypto higher or lower?

The unexpected rise in U.S. inflation triggered a swift reassessment of Federal Reserve policy expectations. After an initial market downturn, Bitcoin and other cryptocurrencies bounced back. This signals that investors may view inflation risks differently. The latest Consumer Price Index (CPI) data for January 2025 overshot forecasts, delaying expectations for a Federal Reserve interest rate cut. Still, Bitcoin’s resilience marks a shift in how inflation affects digital assets. January’s CPI report showed a higher-than-expected inflation rate. Core CPI climbed 3.3% year-over-year, topping the predicted 3.1%. Overall CPI rose 3% annually, slightly above the forecast of 2.9% This prompted investors to adjust their outlook, moving the anticipated Fed rate cut from September to December. Initial market uncertainty gave way as Bitcoin recovered with traders realigning their positions. The CPI tracks price changes in a typical basket of goods and services, providing a monthly inflation measure. In contrast, the Producer Price Index (PPI) tracks wholesale price shifts before they reach consumers, offering additional clues for policymakers and traders. Related: Fed Hints at Smaller Rate Cut as Inflation Persists Federal Reserve Chair Jerome Powell addressed inflation concerns in his semiannual Monetary Policy Report. He noted that while progress exists, inflation remains a stubborn issue. Powell stated that policy must stay tight for now, reinforcing the Fed’s cautious approach. The Fed’s report describes financial conditions as “somewhat restrictive,” with future decisions hinging on economic data. During an extended Q&A before the House Financial Services Committee, Powell took questions on inflation, interest rate paths, and economic forecasts. Lawmakers sought clarity on how upcoming U.S. policies might shape economic conditions. The latest labor market data, including a 143,000 increase in Nonfarm Payrolls (NFP) for January, underscore the Fed’s balancing act. Although below expectations, the Bureau of Labor Statistics (BLS) raised previous NFP figures, pointing to a stronger labor market. Bitcoin, as of press time, trades at $96,229.94 , up 0.06% over the past 24 hours. Yet, it fell 2.51% over the past week. Related: Crypto Bulls or Bears? 4 Key US Reports Releasing This Week To Decide With 20 million BTC in circulation, Bitcoin’s market capitalization sits at $1.9 trillion. The CME Group FedWatch Tool indicates that market players assign less than a 10% chance of a Fed rate cut in March. Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.