The Crypto market lost its market capitalization of $60 billion two hours after revised employment data, revealing a US labor market that is significantly weaker than previously reported.
The Bureau of Labor Statistics (BLS) announced at 10am on September 9th that a preliminary benchmark revision indicated that 911,000 total employments represent a 0.6% downward revision from March 2024 to March 2025.
Bitcoin fell 1.8% from $112,788.75 to $110,793.69 between 10am and 11pm. Ethereum fell 1.6% from $4,346.56 to $4,277.17 over the same period.
Major Altcoin recorded a sudden loss, with Dogcoin down 4.1% from $0.2469 to $0.2367, while Solana down 3% from $218.04 to $2111.69.
Other notable declines include Cardano's 3.5% fell from $0.8839 to $0.8525, XRP's 2.5% fell from $3.01 to $2.93, and BNB's 1% fell from $879.89 to $871.38.
Despite a partial recovery from the daily low, all assets were below their pre-announcement prices.
Significant revisions
Treasury Secretary Scott Bescent confirmed the revision was worse than reporting, saying that when data was combined with 577,000 previous downward revisions, it would have exaggerated total employment to 1.5 million.
Bessent argued that the Fed maintains a restrictive monetary policy based on the number of jobs it has expanded. Market responses reflect investors' concerns that investors worked with incomplete data when setting interest rate policies throughout 2024.
Substantial overemployment suggested that the economy would require earlier stages of financial conditions than policymakers realized.
The annual benchmark revision process compares current employment statistics estimates with comprehensive employment and wages counts from quarterly census employment and wages, and derives data from state unemployment insurance tax records submitted by almost all employers.
The magnitude of the 0.6% revision is above the absolute average of 0.2% over the decade, highlighting the size of the overemployment surplus. BLS attributes inconsistencies to companies report employment lower than monthly employment surveys to unemployment insurance records.
The revision shows traders view the current landscape as uncertain, but the revised numbers increase the odds of rate reductions in September.
