After the U.S. August employment data significantly exceeded expectations, the market quickly adjusted its expectations for the Fed’s policy path. Expectations for rate cuts cooled, putting pressure on risk assets; Bitcoin briefly fell below $80,000, with Ethereum and XRP also declining in tandem.
August job gains exceeded expectations.
Reports show that the U.S. added 162,000 new jobs in August, significantly exceeding the market expectation of 55,000. The unemployment rate remained at 4.1%, in line with expectations, and July's employment figures were revised upward by 43,000.
Generally, strong employment data indicates continued economic resilience. However, for today’s market, this reduces the urgency for the Fed to cut rates soon. The article notes that, following the data release, the market quickly increased its bets on rate hikes rather than cuts.
Bitcoin dropped $1,600 in three minutes.
After the data release, Bitcoin briefly fell below $80,000, dropping approximately $1,600 within three minutes. At the time of writing, Bitcoin was trading at $79,763.95, down 1.4% over the past 24 hours.
Ethereum is trading at $2,461.41, and XRP at $1.41, both weakening intraday. According to Bull Theory, within 25 minutes after the data release, the combined market capitalization of gold, silver, and crypto assets dropped by approximately $835 billion.
Trump criticizes market reaction
Trump then commented on market movements, calling the stock market's decline following a stronger-than-expected jobs report "crazy" and suggesting such a reaction seemed like it was occurring in a "false reality."
He again called on the Federal Reserve to cut interest rates, stating that if the central bank does not act, the United States will “stop trading with countries that have a trade deficit with the U.S.” Trump said the Federal Reserve “must become smarter.”
Zcash rose 13% against the market trend
As most cryptocurrencies declined, Zcash was among the few tokens that rose against the trend. Reports show that Zcash increased by 13%, reaching a price of $1,034.80.
In addition, the article highlights inflationary pressures from energy prices. According to Kobeissi’s data, the national average price of diesel in the United States has risen to $5.62 per gallon, reaching a record high; amid the ongoing Iran conflict, current diesel inventories are at historic lows.
The total market capitalization of the crypto market remains around $2.75 trillion. This volatility highlights that crypto assets remain highly sensitive to U.S. macroeconomic data amid rapidly shifting interest rate expectations.