Friday’s jobs report has stunned even the most seasoned investors and could have major ramifications for the global financial markets.
The Bureau of Labor Statistics released Nonfarm Payroll data for July showed that the US economy added only 73k jobs last month, short of the 110k forecast.
However, it’s the sharp downward revisions to the previous months’ NFP data that are making headlines.
May payrolls were revised down from 144,000 to 19,000, a drop of 125,000, while June payrolls were revised down by 133,000 from 147,000 to 14,000.
Following the massive 258k downward revision, the odds of a Fed rate cut in September have surged to 81%. In fact, the CME FedWatch now shows three rate cuts as the odds-on scenario, which is a decidedly bullish scenario for the crypto market.
However, crypto prices aren’t showing any bullish strength. Instead, the Bitcoin price fell below $113,000 on Friday, while altcoins are faring much worse. Despite concerns of a broader crypto crash, whales continue to buy the dip, anticipating explosive returns in the coming weeks.
Why The Jobs Data Downward Revision Is A Big Deal For Crypto?
Friday’s jobs data is likely to have considerable ramifications for the crypto market.
A 258k downward revision over two months, as well as a bad miss in the July NFP data, isn’t something the market, or the Federal Reserve, could ignore.
Already, US President Donald Trump has fired the Biden-appointed Commissioner of the Bureau of Labor Statistics, Dr Erika McEntarfer, whom he accused of being a partisan and unreliable actor.
However, the market isn’t buying that the jobs data revision is fake. Major US stock indices fell by nearly 2% on Friday, with the tech-heavy NASDAQ falling by 2.24%.
The underlying data is even more worrisome. For instance, unemployment for new labor market entrants saw its highest monthly surge in July since 1967. Similarly, excluding the healthcare and social assistance sector, the US economy has actually lost 93,000 jobs over the past 3 months.
Analysts are already throwing out terms like recession and stagflation, the latter because of the hot PCE inflation data on Thursday. This is worrisome since crypto assets tend to perform the best in a “goldilocks” economy, marked by strong growth and declining inflation.
Is It Time To Sell Crypto?
No, spot buyer do not need to panic sell their crypto assets.
There is already a silver lining to Friday’s jobs data revision and the subsequent crypto market crash. The odds of a Fed rate cut in September, which fell to 37% on Thursday, are now at 80.3%.
In fact, the CME FedWatch is pricing in 3 rate cuts this year, a decidedly bullish scenario for risk assets like crypto.
Prominent analysts aren’t panicking either.
Legendary Wall Street investor and Fundstrat CEO Tom Lee has called this week’s equities and crypto crash “a normal dip”. Considering he is the Chairman of BitMine, the ETH treasury firm could be looking to add to its holdings.
Similarly, popular influencer Income Sharks claim that the crypto market will have a sharp bounce back in September, which makes the ongoing crash an excellent buy-the-dip opportunity.
Best Cryptos To Buy
Large-cap crypto assets continue to be among the best cryptos to buy now, provided sidelined investors know when to buy them.
For instance, the Bitcoin price has two strong demand zones: $111,000 and $107,000, both offering excellent buying opportunities.
Similarly, analysts claim that $3500 for Ethereum and $2.50 for XRP are “gifts”, considering their high upside potential.
Among the low-caps, presale cryptos are in high demand, particularly since they aren’t affected by short-term volatility.
For instance, the new BTC Layer-2 token, Bitcoin Hyper (HYPER), surged up to $6.4 million in its viral presale on Friday.
Bitcoin Hyper is establishing itself as the new prominent project in the Layer-2 sector, aiming to exponentially improve BTC’s scalability and programmability.
Analysts believe HYPER has high upside potential, with many viewing it as the next 100x crypto.
Meanwhile, low-cap memes are in high demand as well. For instance, TOKEN6900, a newer low-cap alternative of SPX6900, has raised over $1.5 million in its ICO.
Like Fartcoin, SPX and Pepe, it is also an unapologetically utility-less meme coin, unlike most new tokens that unnecessarily and deceptively tie themselves to AI.
Much like HYPER, T6900 has impressed analysts with its high upside potential, with many eyeing up to 100x returns from it.
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