Economic Growth and Crypto Participation: Two Different Stories

The latest US Jobs Report has been hailed as a victory for President Trump's economic policies. According to the report, 186,000 private sector jobs were added in March, with the trade deficit decreasing by 52%. However, crypto analyst Lark Davis pointed out that the numbers are not entirely accurate.

While the overall number of jobs added was about 178,000, February lost 133,000 jobs. The three-month average sits at just 68,000 per month. The gains were concentrated in healthcare and construction, but manufacturing did not see a significant rebound. Additionally, the trade deficit figure is misleading, as it was inflated by companies front-loading imports ahead of tariff announcements last year.

Meanwhile, Bitcoin retail participation has hit its lowest level since 2017. According to CryptoQuant analyst Darkfost, shrimp inflows and wallets moving less than 1 BTC to Binance have dropped to a 30-day moving average of just 332 BTC. This is described as a structural decline, not a temporary dip.

Some retail investors may have moved into equities and commodities, which have delivered stronger performances in the current macro environment. A recent survey found that planned crypto allocations had fallen to 21%, down from 29.5% the previous quarter. ETFs and commodities both rose in popularity.