Crypto Bulls Brace for Rout as Fed Reacts to Weak Jobs Data
Fed's hawkish pivot sends shivers through crypto markets as weak employment numbers trigger defensive maneuvers.
Monetary Policy Meets Digital Assets
The Federal Reserve's reaction to disappointing jobs data is putting crypto traders on high alert. Instead of the dovish pivot many anticipated, officials are signaling tighter controls—sending Bitcoin and altcoins into defensive formations.
Market analysts note the irony: traditional finance's clumsy response to economic indicators continues creating whiplash for decentralized assets that supposedly operate outside the system. Crypto's correlation with risk assets remains its greatest vulnerability—and biggest opportunity for those timing the volatility right.
Watch for leveraged positions getting liquidated while long-term holders see another buying opportunity. Because nothing says 'sound monetary strategy' like central bankers making reactive decisions based on backward-looking data.
BTC hits $115K as crypto market awaits Fed updates
“All eyes are on this Wednesday’s FOMC,” Emir Ibrahim, Analyst at Zerocap, noted, pointing to futures markets with 3-4% hoping for a surprise 50 bp move. This reflects the Bureau of Labor Statistics’ massive job revision, erasing 900,000 jobs from prior tallies. Softer non-farm payroll reports for the past four months are another factor asking for the cut. At the same time, headline inflation came up 2.9% year-over-year in August.
Bitcoin is running up by 3% over the last days, while the altcoin season gains momentum. BTC is trading at an average price of $115,025 at press time. Its 24-hour trading volume jumped 43% to hit $45 billion. This signals that traders are moving their funds.
The biggest altcoin, Ether, posted 78% gains over the past 90 days. ETH is trading at an average price of $4,533 at press time.
Solana remains an outlier of interest with constructive price action fueling talk of a potential digital asset treasury, added Ibrahim. Solana price has spiked by 28% over the last 30 days to regain $236 mark.
The analyst noted that if risk assets strive to perform, then it sets up a constructive outlook for the market in Q4. Total value locked is trending higher, stablecoin issuance has hit new highs, and capital is rotating into high-activity chains.
Markets have priced in not only a cut this week, but a series of reductions ahead in 2026. The Fed is under pressure to balance its dual mandate, and traders expect Powell to deliver the first step on Wednesday. Since 2021, Powell has used inflation control as cover, and a more cautious tone from here could stall the current rally.
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