Quick Breakdown:
- The Bureau of Labour Statistics revised US employment figures, reducing total nonfarm employment by 911,000 jobs from March 2024 to March 2025.
- This downward correction led to an immediate $60 billion loss in crypto market capitalization, with major coins like Bitcoin and Ethereum falling significantly.
- Experts suggest this data reveals an economic landscape worse than previously reported, raising the likelihood of US interest rate cuts soon.
The recent revision of US employment data by the Bureau of Labour Statistics (BLS) has triggered a sharp $60 billion contraction in the cryptocurrency market capitalization, exposing a notably weaker labour market than earlier reported. The BLS announced that total nonfarm employment figures were overstated by 911,000 jobs during the period from March 2024 to March 2025, representing a 0.6% downward adjustment far exceeding the typical 10-year average revision of 0.2%.
The overcount of jobs implied that the economy needed a more accommodating policy
The announcement at 10 AM ET on September 9 sent shockwaves through crypto markets. Bitcoin’s price fell by 1.8% from $112,788.75 to $110,793.69 within the hour, while Ethereum decreased by 1.6% from $4,346.56 to $4,277.17. Other altcoins experienced even steeper declines: Dogecoin dropped 4.1%, Solana 3%, Cardano 3.5%, XRP 2.5%, and BNB 1% according to data from CoinMarketCap. Despite some recovery from midday lows, cryptocurrency prices remained below pre-announcement levels.
Treasury Secretary Scott Bessent emphasized that the data served as a “confirmation that economic conditions were worse than reported,” noting combined job overstatements now total 1.5 million when including prior revisions. He also criticized Federal Reserve policymakers for relying on inflated employment figures to maintain restrictive monetary policies throughout 2024.
The revision process compares monthly employment estimates with more comprehensive Quarterly Census of Employment and Wages data derived from state unemployment insurance tax records. The discrepancy arose because some businesses reported fewer employees to tax records than in the monthly surveys.
Investors reacted swiftly, factoring in increased uncertainty and raising expectations for an imminent Federal Reserve rate cut. This marks a critical juncture where economic indicators are reshaping both monetary policy outlooks and market sentiment in crypto assets.
Meanwhile, Kevin O’Leary’s optimistic forecast for the future of cryptocurrency within the US economy envisions it as the 12th economic sector. He believes the industry has transitioned past its “cowboy era” due to increased regulation and the removal of fraudulent actors, fostering a more mature environment.
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