Introduction to Bitcoin and the Job Market
After a strong start to the week, Bitcoin’s price has taken a sharp turn downwards due to macroeconomic headwinds. The US Bureau of Labor Statistics recently announced a significant revision to its job numbers, revealing that nearly 40% of the jobs reported from April 2024 to March 2025 never actually materialized. This downward revision of 911,000 jobs is the largest since 2000 and indicates a significant slowdown in the US labor market, which is a classic indicator of a broader recession.
Impact of Jobs Data on Crypto Prices
The latest jobs data confirms a slowdown in the US labor market, which has caused a sharp pullback in Bitcoin’s price. After trading as high as $113,200 early on Tuesday, the Bitcoin price fell below $111,000 following the jobs revision. Ethereum and altcoins have also reversed much of this week’s gains, with Solana meme coins and ETH ecosystem tokens rejecting at key resistance levels. The deteriorating jobs market indicates that the Federal Reserve may already be too late for a dovish pivot, and the CME FedWatch is now projecting three rate cuts for this year.
How the Latest Jobs Data Affects Crypto Prices
The massive downwards revision in job numbers indicates that the US labor 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. This has led to a sharp pullback in crypto prices, with Bitcoin and Ethereum being affected. However, experts believe that the Fed’s dovish pivot and potential rate cuts could lead to a bullish development for crypto prices.
Thursday’s CPI and Its Potential Impact on Bitcoin Price
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 the $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. On the other hand, Solana meme coin Bonk has rejected from a key resistance level, as has Ethereum meme coin Pepe, making them less desirable investments at the current stage.
Bitcoin Hyper and MaxiDoge: Emerging Altcoins
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. Meanwhile, MaxiDoge (MAXI) is also in high demand, having already raised nearly $2 million, and is being viewed as a low-cap alternative to Dogecoin.
Conclusion
In conclusion, the latest jobs data has had a significant impact on crypto prices, with Bitcoin and Ethereum being affected. While the short-term outlook may be uncertain, experts believe that the Fed’s dovish pivot and potential rate cuts could lead to a bullish development for crypto prices. As for altcoins, Bitcoin Hyper and MaxiDoge are emerging as promising investments, with high latent demand and potential for outsized returns. However, it is essential to remain cautious and do thorough research before making any investment decisions.
