862k jobs vanished, CPI cooled, and Bitcoin now trades like a bond

Earlier this month, we saw the macro picture shift in a very real and tangible way. The record of last year’s job level changed significantly, and markets treated that update as fresh information to trade on.

Two days later, inflation cooled on the headline, yields moved, and Bitcoin moved in the same cross-asset rhythm that, until recently, belonged to rates and major equity indexes.

Bitcoin used to react to crypto-specific headlines: a big company buying BTC, a new product launch, or a regulatory rumor. But in 2026, the price seems to react first to the same macro data that moves bonds and big equity indexes.

The reason for that is simple: Bitcoin sits inside the global risk system now, and when markets reprice interest rates, they also reprice Bitcoin.

On Feb. 11, the US Bureau of Labor Statistics (BLS) published its annual benchmark revision to payrolls. The revision lowered last year’s jobs baseline, with the March 2025 level revised down by 862,000 on a not-seasonally-adjusted basis. That change rewrote a huge part of the recent labor story in one move.

Two days later, January CPI arrived. Headline inflation rose 0.2% month over month and slowed to 2.4% year over year, while core inflation ran firmer than headline and shelter remained a key driver.

Around that cooler CPI print, global markets reported yields easing and Bitcoin rising nearly 5% to above $69,000, the kind of synchronized response that perfectly illustrates the new regime.

Put those together, and you get the new crypto macro stack. Labor data and inflation shape expectations for the Federal Reserve, markets translate that into rate pricing, and the force that tends to hit Bitcoin hardest is the move in real yields. You can think of it as four translations that repeat across weeks: jobs, CPI, Fed pricing, and real yields.

The day the jobs market changed

Most people think of job shocks as layoffs or a weak payroll report. This one looked different: the economy kept moving through January and February, while the measurement of last year’s job level got updated using a better source of records.

Benchmark revisions are more important than most people realize, because they change the base that every later month builds on. A normal monthly payroll report tells you what happened in the latest slice of time. A benchmark revision resets the level underneath many months of estimates, which can alter the entire read of momentum.

Markets care about that because a softer jobs path changes the story of growth and overheating. Growth expectations feed into policy expectations, and policy expectations flow into yields.

Bitcoin reacts because yields act like gravity for all risk assets.

The crypto macro stack, explained like a chain

The macro stack is easiest to understand as a chain of translation, and it tends to run in the same order.

It starts with labor, which includes headline payroll growth and the less glamorous revision process that can change the historical record.

Next, it runs through inflation, where CPI arrives on schedule and acts like a synchronized volatility moment across assets.

From there, it moves into policy expectations, where markets continuously convert data into an implied path for the Fed.

The chain then ends in transmission, where real yields and broader liquidity conditions tighten or loosen financial conditions for everything that trades with risk appetite, including Bitcoin.

In practice, the chain works because most investors, including those who trade crypto, price assets through a discount rate lens. When the market decides that the discount rate will be lower in the future, risk assets tend to get re-rated higher. When the market decides that the discount rate will be higher, the opposite tends to happen.

Over time, the four translations show up again and again, jobs to CPI to Fed pricing to real yields, with Bitcoin increasingly living at the end of the pipe.

Layer 1: the data rewrite that hits like a shock

The BLS payroll number comes from a large survey of employers. Surveys are the fastest and easiest way to gather a huge amount of information, but they’re also just estimates. That’s why once a year, BLS aligns the survey with administrative records that cover far more workers, and that annual alignment is the benchmark revision.

This is why the 862,000 figure landed with such force. It pushed the level of employment lower than markets had assumed, and it altered the implied path of job growth across many months, because a lower base changes the slope of the series.

Traders had spent the year reacting to monthly payroll headlines under one underlying baseline; the revision forced a fast rethink of how tight the labor market really was. The adjustment arrives all at once because it touches the broader historical record rather than a single month.

A monthly payroll surprise can quickly fade when the next report or two changes direction. But a benchmark revision changes the foundation and reshapes how markets interpret the next few releases. That adjustment flows quickly into rate expectations because the Fed’s reaction function depends on labor tightness as well as inflation.

Layer 2: CPI is the trigger, and shelter is the part people miss

CPI days move markets because CPI maps directly to the Fed’s inflation mandate and to the path of policy rates. When CPI prints, markets update their best guess of where inflation is going, then translate that guess into rate pricing.

In January, headline inflation slowed to 2.4% year over year after a 0.2% monthly increase. Core inflation ran firmer than headline, and shelter continued to matter because shelter carries a heavy weight in CPI and tends to move slowly compared with many other categories.

Energy moved down overall in the month, which helped keep headline inflation cooler than it would have been otherwise.

Shelter matters because it tends to adjust with a lag, so it can keep inflation measures sticky even when faster-moving categories cool. That creates a common pattern on CPI days. The first move trades the headline and the immediate surprise versus expectations.

The next move trades the composition, especially anything that changes how persistent inflation feels.

Bitcoin often travels with that same intraday rhythm because it’s trading in the same cross-asset airspace.

Layer 3: where the Fed becomes a probability

The Federal Reserve sets the policy rate at meetings, but markets trade every day. The bridge between those two worlds is the interest-rate futures curve, which constantly embeds the market’s best estimate of future Fed decisions.

A simple way to see that translation is the CME FedWatch tool, which expresses market-implied probabilities for future rate outcomes based on fed funds futures pricing. It gives a clean snapshot of how probabilities shift around CPI, jobs data, and Fed communications.

Softer labor data reduces the sense of overheating, and cooler inflation reduces the fear of persistent price pressure. Those inputs push the market toward a path with easier policy in the future, whether that means earlier cuts, more cuts, or a slower pace of tightening financial conditions.

That repricing can happen within minutes because futures markets update instantly, and those updates quickly spill into Treasury yields.

This matters for Bitcoin because FedWatch probabilities read as a pricing summary derived from futures. So, when the probabilities move, it means that capital has moved with them.

Layer 4: the lever Bitcoin reacts to most, real yields

Nominal yields are the interest rates you see quoted on Treasuries. Real yields adjust those rates for inflation expectations. In market terms, real yields represent the real return available on safe assets over time.

Real yields matter for Bitcoin because they set the opportunity cost for holding assets that offer volatility and upside rather than a guaranteed real return.

When real yields rise, safe assets become more attractive in real terms, and risk assets need to offer more compensation in order to compete. When real yields fall, the bar lowers, and risk assets can re-rate higher on the same cash-flow assumptions or, in Bitcoin’s case, on the same scarcity and adoption assumptions.

Bitcoin often reacts quickly here because it trades 24/7, it’s very liquid, and it sits at the high-volatility end of the risk spectrum. When real yields move sharply after a CPI or labor repricing, BTC can become one of the fastest ways for the market to express that shift.

Why Bitcoin looks like a rates product now

Two structural changes made this macro chain matter more for BTC.

First, spot Bitcoin ETFs created a simple, regulated way for investors to hold BTC exposure inside brokerage accounts. That matters because the marginal buyer pool now includes allocators and risk managers who already think in macro terms: yields, inflation paths, policy expectations, and risk budgets.

Second, derivatives amplify repricing days. Futures and perps translate macro volatility into positioning volatility. Funding rates and basis can heat up quickly when the market leans one way, and that positioning can unwind quickly when the macro data forces a rethink.

The result is that BTC moves can look sharper than the underlying macro impulse, even when the initial catalyst sits in bonds.

A simple way to follow the macro stack each week

The easiest way to track the macro stack is to focus on a handful of indicators that correspond to each step in the chain, and to read them together rather than in isolation. The goal is to follow macro catalysts while still leaving room for crypto-specific liquidity and positioning.

Start with real yields because they sit at the end of the transmission path and tend to carry the cleanest summary of financial conditions. A quick look at the US 10-year Treasury bond tells you whether real yields have been drifting up or down over the past week, which often matches the direction of tightening or easing in broader risk appetite.

Then check how the market has translated the latest data into policy expectations. CME FedWatch captures the shift in implied rate outcomes and makes it legible as a change in probabilities around specific meetings.

If the market has pulled forward cuts or priced a softer path, that often aligns with falling yields. If the market has pushed cuts out or priced a firmer path, that often aligns with rising yields.

After that, look at crypto-specific liquidity and demand measures to see whether the macro impulse has a strong or weak transmission channel into Bitcoin. Stablecoin supply offers a rough proxy for deployable crypto dollars moving between exchanges, DeFi, and OTC rails, and it often captures whether liquidity is expanding or contracting in the part of the market that actually funds spot buying and leverage.

ETF flows add another piece, a visible read on whether there’s a steady bid coming through regulated wrappers. When flows trend consistently positive, they can provide support during choppy macro weeks. When flows slow or reverse, macro moves can bite harder because there is less structural demand absorbing volatility.

Finally, check the risk temperature inside derivatives. Funding and basis act like a quick window into whether positioning is crowded. Hot funding often accompanies aggressive long positioning, which can turn a yield spike into a faster drop through liquidations. Cooler funding tends to mean less leverage, which can dampen forced moves even when macro pressure rises.

Taken together, these five checks, real yields, Fed pricing, stablecoin liquidity, ETF flows, and derivatives temperature, function as a compact dashboard that readers can screenshot and reuse. When most of them point the same way over a week, BTC tends to trade macro-first because the chain lines up from data, to policy pricing, to yields, to liquidity and positioning.

Close: the mental model shift

Bitcoin still has its long-run story: adoption, infrastructure, regulation, custody, and its role as a global asset. It’s the weekly storyline that often runs through rates.

That’s why a benchmark revision can matter more than a single payroll report, and why a CPI print can move BTC within minutes.

The chain runs from labor and inflation to policy pricing, into real yields and liquidity. Once you learn to watch that chain, BTC price action starts to read like a fast, liquid expression of financial conditions rather than a series of disconnected reactions, and the next major CPI or labor update starts to look like a cross-asset event that Bitcoin will trade in real time.