The Bitcoin (BTC) price tumbled under $54,000, its lowest level since early August, in wake of the release of the August US jobs report, which appears to have exacerbated, not eased, fears that the US is tilting towards a recession and that the Fed may be behind the curve in preventing it.

The latest non-farm payrolls number showed the US economy added 142,000 jobs in August, a tad below the expected number of 160,000.

If the US economy tilts into recession by 2025 and the government/Fed response is massive rate cuts, QE, and big spending, this will be a huge tailwind for Bitcoin.

After all, Bitcoin has been referred to as a great hedge against government currency debasement.

2020/2021 was a perfect example—Bitcoin vaulted to new record highs amid massive fiscal and monetary stimulus, only to pull back harshly as this stimulus was withdrawn (i.e., the Fed started hiking interest rates).

But we are still a long way from that point. As the likelihood of a near-term recession rises as US economic data weaken and markets remain unsure of the government/Fed response, rising uncertainty could hit risk assets across the board, Bitcoin included.

If the US economy tilts into recession by 2025 and the government/Fed response is massive rate cuts, QE, and big spending, this will be a huge tailwind for Bitcoin.

After all, Bitcoin has been referred to as a great hedge against government currency debasement.

2020/2021 was a perfect example—Bitcoin vaulted to new record highs amid massive fiscal and monetary stimulus, only to pull back harshly as this stimulus was withdrawn (i.e., the Fed started hiking interest rates).

The unemployment rate, meanwhile, eased back to 4.2% from 4.3% in July, but that seemingly failed to ease investor worries.

Last down around 3.7% on the day, per TradingView, the drop in the Bitcoin price reflects bearish trading conditions across risk assets.