Key Points:

• The recent U.S. payrolls revision has decreased the reported job count by 911,000, marking the largest downward revision on record.
• This adjustment indicates a much weaker labor market in the previous year than what was disclosed by the government’s monthly reports.
• Following the news, both Bitcoin and gold traders sold assets after previously driving up prices based on anticipation.

The U.S. preliminary benchmark payrolls revision reported a reduction of 911,000 jobs for the year ending March 2025, marking the steepest decline on record. This information suggests a significant underreporting of labor strength in prior monthly Nonfarm Payrolls reports, which influence vast capital allocation decisions and Federal Reserve policies.

Had this data been available earlier, it’s likely the Fed’s rate adjustments would have been different throughout 2025. Currently, there is widespread anticipation that the central bank will reduce rates at their next meeting. This new information could open up possibilities for a 50 basis point rate cut, as opposed to the previously expected 25 basis points.

Market Reactions:

Rate-sensitive assets like cryptocurrency and gold reacted negatively to the announcement. Gold futures initially climbed past $3,700 but faltered after the news broke. Bitcoin quickly dropped from a recent peak of $113,000 to about $111,600, experiencing a 1% drop in the last 24 hours, while the U.S. 10-year Treasury yields edged up to 4.07%.