Crypto Market Declines Amid Economic Shocks and Job Report Revisions
As of now, BTC is trading at approximately $113,648, down 1.4% in the last 24 hours. Other cryptocurrencies have experienced larger declines: ETH is down 3.7% to $3,503, XRP down 1.5% to $2.94, SOL down 2.7% to $164.13, and DOGE down 3.7% to $0.1993. This downturn follows economic and geopolitical shocks impacting investor sentiment.
U.S. stock markets also closed lower on Friday:
- Dow down 1.23%
- S&P 500 off 1.6%
- Nasdaq Composite down 2.24%
July Jobs Report
The U.S. Bureau of Labor Statistics reported that only 73,000 jobs were added in July, significantly below expectations. Additionally, May and June job totals were revised down by 258,000. The unemployment rate remains at 4.2%, but long-term unemployment rose by 179,000, indicating a weakening labor market.
Trump's Response to Jobs Report
President Trump accused the BLS Commissioner of manipulating employment data and called for her dismissal. His comments raised concerns among investors regarding the politicization of economic data.
Increased Tensions with Russia
Trump ordered two U.S. nuclear submarines to reposition following remarks from Russian officials. This announcement heightened fears of escalating tensions between the U.S. and Russia, leading traders to sell risk assets in favor of safer investments.
Fed Rate Cut Expectations
The weak labor data has led traders to expect a 50 basis point rate cut at the Federal Reserve's September meeting. However, this potential easing is interpreted as a response to economic weakness rather than a growth stimulus, causing further selling pressure in crypto markets amid recession fears.