Analyst: The Federal Reserve may turn dovish, which could boost BTC and risk assets

ChainCatcher news, according to The Block, U.S. job growth in February fell short of expectations, which may prompt the Federal Reserve to adopt a dovish stance, as the need for interest rate cuts to stimulate the economy could boost global stock markets and cryptocurrencies.

However, Nexo analysts believe that the ongoing inflation risks related to tariffs and supply chain disruptions remain factors that could keep the Federal Reserve cautious.

Additionally, Wincent senior executive Paul Howard stated that Friday's employment report, which was below expectations, supports the view that interest rate cuts may be necessary to stimulate the economy. He also noted that reducing deficit costs could be a top priority for the U.S. government, which would have a favorable impact on risk assets such as cryptocurrencies.