According to The Kobeissi Letter, the US labor market is showing signs of deeper weakness as permanent job losses surged by 105,000 in April, reaching 1.92 million—the highest level since October 2021 (source: Twitter, @KobeissiLetter, May 14, 2025). This sharp rise, a 63% increase since September 2022, signals softening economic fundamentals that could impact investor sentiment and trigger increased volatility in both traditional equities and cryptocurrency markets. Traders should monitor labor market data closely as rising unemployment has historically led to shifts in risk appetite and potential capital flows toward safe-haven or alternative assets such as Bitcoin and Ethereum.

According to The Kobeissi Letter, the US labor market is showing significant weakness beneath the surface, with permanent job losses rising by 105,000 in April to 1.92 million—marking the highest level since October 2021. Since September 2022, these losses have surged by 737,000, or 63%, signaling a deteriorating employment landscape (source: The Kobeissi Letter, Twitter, May 14, 2025). For cryptocurrency traders, this growing economic uncertainty often translates into heightened volatility across digital assets as investors seek alternative hedges and reassess risk. Historically, worsening labor market data has led to both safe-haven flows into Bitcoin and altcoins as well as rapid liquidations, depending on broader macro sentiment. Traders should watch for increased price swings and liquidity shifts in major crypto pairs following such labor data releases.