After a strong start to the week, Bitcoin is seeing a sharp pullback as macroeconomic headwinds are back in play.
Preliminary annual benchmark revisions show that nonfarm payrolls for the 12-month period ending in March 2025 were lowered by 911,000 jobs, the largest downward revision since 2000.
In simpler terms, nearly 40% of the jobs the US Bureau of Labour Statistics reported from April 2024 to March 2025 never actually materialized.
This latest jobs data confirms a significant slowdown in the US labour market, one of the classic indicators of a broader recession.
After trading as high as $113,200 early on Tuesday, the Bitcoin price fell below $111,000 following the jobs revision. Ethereum and the altcoins have also reversed much of this week’s gains, with Solana meme coins and ETH ecosystem tokens rejecting at key resistance levels.
Sidelined investors should refrain from buying the dip before this week’s CPI and PPI inflation data. However, with three rate cuts now locked in this year, the stage is set for an explosive fourth-quarter crypto bull run.
How Does The Latest Jobs Data Affect Crypto Prices?
The US economy added 911,000 fewer jobs than previously expected in the 2024 financial year.
The massive downwards revision indicates that the US labour market wasn’t as strong as reported. The weakness is now apparent, with the latest jobless claims, nonfarm payroll for July, and ADP figures all confirming the negative trend.
Notably, the deteriorating jobs market indicates that the Federal Reserve may already be too late for a dovish pivot.
Unsurprisingly, the CME FedWatch is now projecting three rate cuts for this year. This is a decidedly bullish development for crypto prices as Bitcoin tends to perform better during looser monetary conditions.
However, it is imperative that the cracks in the jobs market do not materialize into a full-blown recession.
Will Thursday’s CPI Result In Another Bitcoin Price Crash?
It is unlikely that this week’s inflation data, Wednesday’s PPI and Thursday’s CPI, will have any long-term effect on crypto prices.
Outside of unforeseeably disastrous inflation data, the Fed will likely pivot to aggressive rate cuts and quantitative easing.
However, leverage traders should remain cautious of heightened volatility both ahead of and following this week’s CPI and PPI releases.
Bitcoin Price Prediction: Buy The Dip?
The Bitcoin price continues to reject below $112,500 resistance level.
Sidelined investors should be wary of buying BTC if it fails to reclaim this level, which could result in a correction to $107,000, and even $100,000.
However, experts believe that BTC is on the cusp of a massive uptrend, especially as it has formed a bullish divergence in its weekly timeframe.
Best Altcoins To Invest In
Altcoins that continue to show bullish strength despite the weakness in BTC have high latent demand and tend to outperform once the broader market outlook improves.
For instance, Worldcoin is seeing a strong rally after Ethereum treasury firm BitMine announced the purchase of a stake in Eightco Holdings, the new WLD treasury company. The WLD price is up by 110% over the past 7 days.
On the contrary, Solana meme coin Bonk has rejected from a key resistance level, as has Ethereum meme coin Pepe. These aren’t smart investments at the current stage.
Among the low-caps, Bitcoin Hyper (HYPER) continues to be the best crypto presale investment, having already raised nearly $15 million behind strong whale and retail investment.
HYPER is a layer-2 coin and is expected to show a strong correlation with its layer-1 token, Bitcoin. With BTC projected to hit $150,000 this year, Bitcoin Hyper is an excellent bet for outsized returns.
As such, the top layer-2 coins tend to reach multibillion-dollar valuations. Unsurprisingly, experts are viewing HYPER as the next 10x crypto.
Meanwhile, MaxiDoge (MAXI) is also in high demand, having already raised nearly $2 million.
MAXI is being viewed as a low-cap alternative to Dogecoin, which is another altcoin that is on the cusp of an explosive breakout.
Owing to its satirical portrayal of crypto degens, MAXI is gaining significant traction among them. Many of the early buyers are smart money investors and low-cap hunters, who are eyeing up to 100x returns from it.
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