US Jobs Data Clarifies Fed Rate Cut Stand, Crypto Prices Fumble Further

TheNewsCryptoPublished on 2026-02-12Last updated on 2026-02-12

Abstract

US jobs data for January 2026 exceeded expectations, with nonfarm payrolls rising by 130,000—significantly above the 55,000 forecast—and unemployment dipping to 4.3%. The strong report reduced the likelihood of a Federal Reserve rate cut in March, with rates expected to remain between 3.50% and 3.75% until at least June. While stocks and bonds reacted positively, the crypto market declined slightly, with its total cap falling to $2.3 trillion. Bitcoin traded around $67,000, with concerns it may drop below $65,000. Major altcoins showed mixed movements. The strong economic data may further dampen investor appetite for riskier assets like cryptocurrencies.

US jobs data for January 2026 is out, and the picture is better than what was anticipated. Most importantly, it sheds some more light on the possibility of a rate cut by the US Federal Reserve in its upcoming March meeting. For crypto prices, the situation has worsened over the last 24 hours, even though a few upticks are observed amid fluctuations.

US Job Data

Investors and other market players have finally caught a break with the US Job data for January 2026. As reported by the Bureau of Labor Statistics, the nonfarm payroll rose by 130k in the last month, against an earlier forecast of 55,000 by Dow Jones consensus. Leading the charge was the health care sector, with social assistance and construction sectors following the lead.

Unemployment dropped slightly from 4.4% to 4.3%, now translating to 7.4 million unemployed people as of January 2026. The rate was earlier estimated to stay the same in the light of flat retail sales data in December 2025.

US stocks and bonds were among the first to react positively. US Treasury yields, for one, jumped by 4.5 bps to 4.19% as an initial response. CNBC has reported consecutive growth since November 2025 for job creation. The same report has stated that US President Donald Trump called this report a sign of the strong economy.

Reaction of Crypto Prices

Crypto prices continue to move past their respective bullish mark. Their collective market cap has declined by 0.28% to $2.3 trillion, earlier above $3 trillion. BTC is still making moves between $67k and $71k, currently listed at $67,088.84, which is slightly up by 0.27% over the last 24 hours.

A similar reaction is visible on other top cryptocurrencies, including, but not limited to, ETH (+1.25%), XRP (+1.29%), and SOL (-0.28%). Concerns about BTC extending losses below $65k remain on the table. Notably, Bitcoin tokens have been squeezed between $65k and $70k for some time now.

And Now The Fed Rate Cut

The US Federal Reserve didn’t slash rates in January, and is less likely to cut rates in March 2026 as well. A 10-2 voting verdict kept the rate between 3.50% and 3.75%, something that could go on till June.

Oren Klachkin, Financial Market Economist at Nationwide, has stated, as reported by Reuters, that an extended pause still seems likely. No rate cut in March is now likely to have some influence over investors’ appetite for fund allocation to risky ventures, cryptocurrencies in this case.

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Related Questions

QWhat was the actual nonfarm payroll increase for January 2026 and how did it compare to the forecast?

AThe nonfarm payroll rose by 130,000 in January 2026, which was significantly higher than the earlier forecast of 55,000 by the Dow Jones consensus.

QHow did the unemployment rate change in January 2026 and what was the estimated number of unemployed people?

AThe unemployment rate dropped slightly from 4.4% to 4.3% in January 2026, translating to 7.4 million unemployed people.

QWhat is the current status of the US Federal Reserve's interest rate and what is the outlook for a rate cut in March 2026?

AThe US Federal Reserve kept the rate between 3.50% and 3.75% and is less likely to cut rates in March 2026, with an extended pause seeming likely.

QHow did the collective market capitalization of cryptocurrencies change in the last 24 hours and what is its current value?

AThe collective market cap of cryptocurrencies declined by 0.28% to $2.3 trillion over the last 24 hours, down from being above $3 trillion earlier.

QWhich sectors were reported as leading the job growth in the January 2026 US jobs data?

AThe health care sector led the job growth, followed by the social assistance and construction sectors.

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