The recent revision of employment data by the Bureau of Labor Statistics (BLS) has sent shockwaves through the cryptocurrency market, resulting in a staggering loss of $60 billion in market capitalization within a two-hour period. This significant downturn was triggered by revelations of previously overstated job figures, underscoring a weaker labor market than initially reported.
On September 9, 2025, at 10 AM ET, the BLS announced that preliminary benchmark revisions indicated total nonfarm employment was inflated by approximately 911,000 jobs. This adjustment represents a downward revision of 0.6% for the period from March 2024 to March 2025. In the wake of this announcement, Bitcoin saw a decline of 1.8%, falling from $112,788.75 to $110,793.69, while Ethereum decreased by 1.6%, dropping from $4,346.56 to $4,277.17. Major altcoins experienced even steeper losses; for instance, Dogecoin fell by 4.1%, and Solana dropped by 3%. Other notable declines included Cardano’s 3.5% drop and XRP’s 2.5% decrease. Despite some recovery later in the day, all cryptocurrencies remained below their pre-announcement prices.
According to Treasury Secretary Scott Bessent, this employment data revision serves as a confirmation of deteriorating economic conditions. He noted that when combined with earlier downward revisions totaling 577,000 jobs, the total overstatement reaches a concerning 1.5 million. Bessent argued that the Federal Reserve’s restrictive monetary policy was based on inflated employment figures, which may have influenced their decision-making throughout 2024.
Bessent stated, “The market reaction reflected investor concerns that the Federal Reserve operated with incomplete data when setting interest rate policy.”
The substantial employment overcount has led traders to perceive the current economic landscape as uncertain. However, the revised figures could increase the likelihood of a rate cut in September 2025. The annual benchmark revision process conducted by the BLS compares Current Employment Statistics estimates against comprehensive employment counts derived from state unemployment insurance tax records, which are filed by nearly all employers. The magnitude of the 0.6% revision exceeds the 10-year absolute average of 0.2%, highlighting the scale of the employment overstatement.
The BLS attributes this discrepancy to a consistent pattern where businesses report lower employment figures to unemployment insurance records compared to monthly employment surveys. This misalignment emphasizes the need for accurate data when shaping economic policy.
As the crypto market grapples with these developments, investors are urged to remain cautious. The volatility following the employment data revision serves as a reminder of the high-risk nature of cryptocurrency trading. Individuals should conduct thorough due diligence before making any investment decisions.
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