Crypto Markets Falter After Weak U.S. Jobs Report
Crypto markets briefly rallied Friday following disappointing U.S. employment data but quickly reversed, with heavy selling across major digital assets and equities.
The Bureau of Labor Statistics reported that only 22,000 jobs were added in August, well below economist expectations, strengthening bets on a Federal Reserve rate cut later this month. Early market reaction lifted bitcoin, ether, and other tokens alongside stocks and gold, but the momentum faded after Wall Street opened.
Ether (ETH) led declines, dropping nearly 4% in minutes to close 1.5% lower at $4,279. Solana (SOL) fell to $202.76, and XRP slipped to $2.81. Bitcoin (BTC) declined roughly 2.5%, holding near $110,500 despite early gains.
Equities reversed alongside crypto, with the Nasdaq down 0.6% and the S&P 500 off 0.7%. Gold remained a safe-haven beneficiary, up 0.9% for the session after briefly hitting a record $3,654 per ounce.
Economists emphasize that the weak jobs report increases pressure on the Fed. Heather Long, chief economist at Navy Federal, noted, “There’s barely been any job growth in the past four months. The Federal Reserve has to cut in September, and maybe October now.” CME futures now show 86% odds of a 25-basis-point cut and 14% probability of a 50-basis-point move.
Crypto-related equities extended losses, with Coinbase (COIN) down 4%, Circle (CRLC) 7.5%, MicroStrategy (MSTR) 1.5%, and Marathon Holdings (MARA) 3.2%. Ether treasury operators Bitmine Immersion (BMNR) and Sharplink Gaming (SBET) were down 5.4% and 6%, respectively.
Olu Sonola, Head of U.S. Economic Research at Fitch Ratings, said, “The weaker-than-expected jobs report all but seals a 25-basis-point rate cut later this month. The Fed will likely prioritize labor market stability over inflation in the near term, especially with four consecutive months of manufacturing job losses and ongoing tariff uncertainty.”
