FameEX Hot Topics | Bitcoin Shaken by Surprise U.S. Jobs Revision: What’s Ahead?

The current U.S. macroeconomic environment bears striking similarities to the early 1990s, when Federal Reserve rate cuts triggered a powerful recovery in financial markets. Back then, equities rebounded by over 30% following a steep recession. Today, with weakening labor data and elevated inflation, the stage may be set for Bitcoin to benefit from a similar monetary shift.

Bitcoin has already shown signs of strain, dipping below $111,000 in tandem with U.S. stock declines after the Bureau of Labor Statistics (BLS) delivered a historic revision. The agency cut 911,000 jobs from prior payroll data, the sharpest downward adjustment ever recorded. The revision included 880,000 fewer private-sector jobs and 31,000 fewer in government payrolls. As a result, unemployment rose to 4.3%, and August job creation was just 22,000 compared with 75,000 expected. This softening labor picture adds to recession risks, particularly as core PCE inflation remains stubbornly high at 2.9%.

Markets are now betting on decisive action from the Federal Reserve. Bond traders see a 92% chance that policymakers will cut rates by 25 basis points at their September meeting, with expectations for at least two additional cuts before the end of 2025. Commentators like The Kobeissi Letter argue the Fed will be forced to ease policy even with “hot inflation” because of the weakening labor market, echoing the early 1990s when rate reductions revived economic growth. Historical precedent suggests that asset owners, including Bitcoin investors, may once again “reap the rewards.”

Gold has already surged nearly 40% in 2025, with traders pricing in labor weakness well ahead of the BLS revision. Bitcoin has climbed more than 20% this year under similar conditions, and analysts suggest it could follow gold’s rally path due to their lagging correlation. Technical indicators reinforce this bullish outlook. Bitcoin has bounced off the lower boundary of a rising wedge pattern, signaling renewed bullish control with an upside target near $129,000, aligned with the 1.618 Fibonacci extension. This implies a potential 12–15% advance from current levels.

Meanwhile, Bitcoin continues to trade above its 20-week exponential moving average (EMA), now near $108,500, confirming strong support beneath the market. A decisive break above the $115,000–$116,000 resistance zone could accelerate momentum, ushering in fresh all-time highs and signaling the next major phase of Bitcoin’s bull cycle. If history rhymes with the 1990s, the combination of Fed easing, inflationary pressures, and institutional demand could propel Bitcoin even higher.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.