02.08.2025 06:10

The unexpectedly weak July jobs report, released Friday, sent shockwaves through global financial markets, surprising even veteran investors. The Bureau of Labor Statistics announced that only 73,000 jobs were added in July, significantly lower than the projected 110,000. However, the truly startling revelation lay in the substantial downward revisions to previous months' data.

May's job growth was revised down a staggering 125,000, from 144,000 to a mere 19,000. June's figures suffered an equally dramatic reduction, plummeting 133,000 from 147,000 to just 14,000. This massive 258,000 downward revision across two months dramatically increased the likelihood of a Federal Reserve interest rate cut in September, reaching an 81% probability according to market indicators. The CME FedWatch tool now predicts a highly probable scenario involving three rate cuts, a development generally considered bullish for the cryptocurrency market.

Despite this potentially positive indicator for cryptocurrencies, market prices are not reflecting optimism. Bitcoin dipped below $113,000 on Friday, with altcoins experiencing even steeper declines. Interestingly, despite the broader market downturn and fears of a significant crash, large cryptocurrency holders ("whales") are continuing to buy, suggesting anticipation of substantial future gains.

The drastic revision to the employment data holds significant implications for the cryptocurrency market. The combined negative impact of the July miss and the massive downward revisions—a total of 258,000 jobs—is a factor neither the market nor the Federal Reserve can overlook. The situation escalated further with President Trump's dismissal of the Bureau of Labor Statistics commissioner, citing concerns about partisan bias and unreliable data reporting. The political fallout adds another layer of complexity to the already volatile situation.