Bitcoin News Today: Labor Market Stumbles, Fed on Edge as Bitcoin Defies Downturn

U.S. jobs data released on Sept. 5, 2025, revealed a significant slowdown in the labor market, with only 22,000 jobs added in August, far below the 75,000 expected. The report also showed the unemployment rate rising to 4.3%, the highest since 2017, and a net loss of jobs in June after revisions. These figures, coupled with a 75% drop in average monthly job growth compared to the prior year, sparked immediate market volatility. Major U.S. stock indexes turned negative shortly after the report’s release, despite initial gains, as investors grew concerned about economic momentum and inflationary pressures.

The weakness in the jobs market is widespread, with declines reported in manufacturing, construction, and oil drilling—industries central to the Trump administration’s economic agenda. The federal government also continued to cut jobs, having shed 97,000 since the beginning of the year. These developments coincide with the Labor Department reporting more job seekers than openings for the first time in over four years, adding to concerns about long-term labor market health.

The report came amid growing political and economic uncertainty, following President Trump’s abrupt removal of Labor Department head Erika McEntarfer for allegedly releasing inaccurate data. This move has raised concerns about the politicization of economic statistics and the credibility of official data. Trump has criticized the Federal Reserve for maintaining high interest rates, which he argues are stifling economic activity and hurting businesses. The Fed, however, has resisted rate cuts due to fears that Trump’s aggressive tariff policies may reignite inflation.

The weak jobs data has reignited speculation about a potential Fed rate cut, with market participants pricing in a 25-basis-point reduction at the central bank’s upcoming policy meeting. Such a move could provide short-term relief to businesses and investors, though it risks exacerbating inflation if economic conditions do not improve. The Fed’s decision will be closely watched as a critical factor in shaping the trajectory of both the stock and bond markets.

Amid the turmoil, Bitcoin (BTC-USD) rose to $112,300, showing resilience despite the mixed macroeconomic environment. The price has swung between $110,730 and $112,980 in recent sessions, with institutional inflows and whale activity providing some support. Large holders, including Michael Saylor’s firm and Japanese firm Metaplanet, have added to their Bitcoin reserves, indicating continued confidence in the asset as a hedge against U.S. debt and economic uncertainty. However, analysts remain divided, with some warning of a potential 90% crash in the near term and others projecting a rise to $150,000–$200,000 by year-end.

The mixed signals from the U.S. labor market and the divergent views on Bitcoin’s future underscore the uncertainty facing investors in both traditional and digital asset markets. As the Fed prepares to act and political dynamics evolve, the coming weeks will be pivotal in determining whether the current economic slowdown translates into a broader recession or if policy interventions will stabilize growth.

Source: [1] What to know about the August Jobs Report: Labor market ... (https://www.nbcnews.com/business/economy/august-2025-jobs-report-how-many-which-industries-what-to-know-rcna228780) [2] Cracks in the U.S. economy: Job growth slows 75% from a ... (https://www.npr.org/2025/09/05/nx-s1-5529937/economy-jobs-trump-bls)