The cryptocurrency market stabilized near a total valuation of $2 trillion on Friday following new U.S. labor data. The unexpected decline in job growth reinforced expectations that the Federal Reserve could shift toward rate cuts later in the year, a factor that historically supports risk assets like cryptocurrencies. Technical indicators suggest selling pressure has eased after a sharp correction in February.
The cryptocurrency market held steady near the $2 trillion mark after new U.S. labor data showed an unexpected decline in job growth. This reinforced expectations that the Federal Reserve could shift toward a more accommodative policy stance later this year.
According to the latest Employment Situation report, nonfarm payrolls fell by 92,000 jobs in February while the unemployment rate remained unchanged at 4.4%. The weaker-than-expected data signaled the U.S. labor market may be cooling, a development closely watched by investors.
Data shows the total cryptocurrency market capitalization excluding stablecoins hovering around $2.04 trillion. The market has been attempting to stabilize following a sharp decline in February that wiped roughly $1 trillion from total market value.
Technical indicators also point to a potential stabilization phase. The Relative Strength Index [RSI] on the daily chart has recovered to around 46, rebounding from deeply oversold conditions near 20 recorded during February’s sell-off.
Cooling labor data could strengthen the case for the Federal Reserve to adopt a more accommodative stance later in 2026. However, the crypto market is waiting for clearer confirmation from upcoming economic data and Federal Reserve guidance before attempting a broader recovery.
