Key Insights:
- Bitcoin price slips after the US Nonfarm payrolls data was revised down by 911K, the largest drop reported ever.
- Experts claimed the US Federal Reserve needs to cut interest rates aggressively.
- Bitcoin price slips amid the rise in US dollar and Treasury yields, with traders eyeing PPI and CPI this week.
Bitcoin price slips nearly 1% as the U.S. Nonfarm payrolls data was revised nearly 1 million down, the biggest cut reported ever. This signals the US jobs market is far weaker than reported, indicating that the Federal Reserve needs to cut rates faster. Will this trigger a Bitcoin price rally above the key $117K level?
Weak US Jobs Data Turns More Weaker, What’s in for Bitcoin Price?
The U.S. Bureau of Labor Statistics (BLS) released the much-awaited Nonfarm payrolls for the 12 months ending March 2025. It revealed that BLS overstated the number of jobs added by 76,000 per month, according to The Kobeissi Letter on September 9.
Notably, there are more unemployed people than job openings in the US, the first time since the 2020 Pandemic lockdowns. This is concerning as the US had 7.18 million job openings for 7.24 million unemployed workers in July.
Following the release, Bitcoin price also dropped, reflecting the soaring concerns in the broader financial market.
Zerohedge claimed US President Donald Trump was right about firing Commissioner Erika McEntarfer in August. There was almost no job creation by the Biden administration last year, referring to it as another BLS scandal by Zerohedge.
The Federal Reserve should have continued to cut rates in February, similar to other central banks taming inflation. Meanwhile, Trump continued to slam Fed Chair Jerome Powell for staying hawkish despite favorable data for resuming Fed rate cuts.
Markets expect aggressive Fed rate cuts to bring rates below 3% by the end of 2026. However, Renaissance Macro’s Neil Dutta said the September dot plot won’t align, requiring eight FOMC officials to lower their 2026 projections to 3% or less, which he sees as unlikely.
50 Bps Fed Rate Cuts in September amid Weak US Jobs Data
As The Coin Republic reported, the Nonfarm payrolls data of 22K, significantly lower than 75K expectations, last week confirmed a 25 bps Fed rate cut in September.
Moreover, the US JOLTS Job Openings data was lower than expected at 7.181 million, and the ADP Nonfarm Employment Change and the Jobless Claims jobs data signaled a weak labor market in the United States.
The CME FedWatch showed odds of three Fed rate cuts this year after the latest US jobs data. Moreover, the probability of a 25 bps Fed rate cut in September increased more than 91% at the time of writing.
The US Dollar Index climbed slightly to 97.67 after the Nonfarm payrolls revision with Bitcoin price falling. Also, the 10-Year Treasury yield increased to 4.082%, but remained lower than the recent high that fueled concerns over the health of the US economy.
Meanwhile, BitMEX co-founder Arthur Hayes revealed that the 2-year Treasury yield indicates a 50 bps rate cut in September. This would bring massive capital inflow into the crypto market, especially DeFi.
Bitcoin Price to Rally or Fall Amid Broader Economic Concerns?
BTC price was trading nearly 2% lower at $110,950 at the time of writing. The Bitcoin price fell from a 24-hour high of $113,225 to a 24-hour low of $110,775 due to the rise in DXY and Treasury yields.
Furthermore, the trading volume increased by 24% in the last 24 hours, indicating interest among traders despite uncertainty.
Also, the concerns over the Fed losing its independent position are taking prices down in the crypto and stock markets. Ken Griffin said Trump’s pressure on the Fed and dismissal of officials risk eroding U.S. institutional credibility and driving up long-term borrowing costs.
Analyst Ali Martinez revealed that Bitcoin price needs to reclaim above $113K for a further move above $116K and possibly $119K. Also, Michael van de Poppe pointed out that BTC continuation will see strength on the altcoin market.
