Bitcoin, Stocks Slide as Jobs Report Miss Sparks Rate Cut Speculation and Safe-Haven Rush
Markets turned sharply lower Friday afternoon as investors reacted to a disappointing U.S. jobs report, raising the likelihood of Federal Reserve rate cuts as soon as September and triggering a shift toward traditional safe-haven assets.
The July payroll report showed slower-than-expected hiring, accompanied by steep downward revisions to May and June figures. The result marked the weakest three-month employment stretch since the 2020 pandemic shock — signaling a cooling labor market and placing pressure on the Fed to respond.
Bond yields and gold moved swiftly. The yield on the 10-year Treasury fell 14 basis points to 4.22%, while gold surged 1.5% to $3,400, pushing closer to its record high as investors rotated out of risk assets.
Crypto and equities did not share in the rally. With less than two hours remaining in the U.S. trading session, the Nasdaq was down 2.5%, and bitcoin slid more than 3% to $113,800. Notably, bitcoin was one of the more resilient among major digital assets.
Ethereum (ETH), Solana (SOL), BNB, and Dogecoin (DOGE) each dropped roughly 6%, while XRP outperformed slightly with a 2.9% decline.
Political Fallout
Reacting swiftly, former President Donald Trump posted on Truth Social: “Jerome ‘Too Late’ Powell is a disaster. DROP THE RATE.” He also called for the dismissal of Dr. Erika McEntarfer, head of the Bureau of Labor Statistics, accusing her of manipulating data to favor the Biden administration.
Crypto-Exposed Stocks Hit Hard
Crypto-linked equities were among the session’s biggest losers. Coinbase (COIN) plunged nearly 18%, hurt by a weak earnings report and broader market risk aversion. Robinhood (HOOD) declined 3.1%.
Bitcoin mining firms also came under pressure. Riot Platforms (RIOT) tumbled 17%, while Marathon Digital (MARA) shed 3%. Meanwhile, stablecoin issuer Circle (CRCL) and bitcoin treasury heavyweight MicroStrategy (MSTR) each dropped 7.5%.
With rising recession fears, softening jobs data, and a possible Fed pivot ahead, traditional assets are seeing renewed demand — while digital markets continue to absorb downside volatility.
