#WhiteHouseDigitalAssetReport UNEMPLOYMENT DATA WAS WRONG

In July 2025, U.S. employment data for May and June was sharply revised downward, showing only 19,000 and 14,000 jobs added respectively—down from over 140,000 initially reported. This revision signals a much weaker labor market than previously thought. The unemployment rate rose to 4.2%, and average job growth over the last three months fell to just 35,000—the lowest since 2010.

These weak numbers have fueled expectations of a Federal Reserve rate cut, with market odds rising to over 80% for a cut by September. Rate cuts typically support risk assets like cryptocurrencies, as they increase liquidity and lower the opportunity cost of holding non-yielding assets like Bitcoin or Ethereum.

Initially, in May, when jobs were believed to be growing at a steady pace, Bitcoin rose around 0.9%, and Ethereum followed suit. However, by mid-June, rising jobless claims (around 248,000 weekly) and worsening long-term unemployment dampened crypto sentiment, leading to short-term price declines of 2–3% across major tokens.

The revised job data also revealed rising unemployment among recent graduates (~6.6%), likely impacting retail investor activity in crypto markets, which rely heavily on younger participants. As economic uncertainty deepens, some investors moved away from speculative assets like crypto.

Looking ahead, crypto markets may benefit if the Fed moves forward with rate cuts, but overall sentiment remains mixed. While lower interest rates are bullish, weak economic fundamentals and reduced retail participation may limit immediate gains.

In summary, the downward revision to U.S. employment data highlights a weakening economy, increasing chances of monetary easing. This is a potential positive for crypto markets, but broader concerns around economic slowdown and risk aversion continue to weigh on investor confidence. Monitoring inflation and future Fed signals will be key to predicting crypto’s next move.