Bitcoin News Today: Bitcoin Dips 1.4% as Jobs Data and Geopolitical Tensions Trigger Crypto Selloff

Bitcoin and Ethereum led a broad selloff in the crypto market amid a confluence of economic and geopolitical risks, sending investors into a risk-off mode. The U.S. July jobs report revealed only 73,000 jobs added, significantly below expectations, with a downward revision of 258,000 from May and June. The data signaled a rapidly deteriorating labor market, raising fears of a potential recession and increasing the likelihood of a Federal Reserve rate cut in September [1]. However, the prospect of monetary easing was interpreted not as a bullish sign, but as a confirmation of ongoing economic weakness [1].

Compounding the market anxiety, President Trump publicly accused the U.S. Bureau of Labor Statistics of manipulating data to influence the 2024 election and ordered the removal of its commissioner, a Biden appointee. The accusation added to the perception of political interference in key economic data, further rattling investor confidence [1]. The same day, Trump also announced the repositioning of two U.S. nuclear submarines in response to provocative statements by a senior Russian official, raising concerns about a potential escalation in U.S.-Russia tensions [1]. Although some analysts viewed the move as posturing rather than an immediate military threat, the mere possibility of unintended consequences prompted a sharp shift toward safer assets.

The crypto market reacted swiftly. As of the time of writing, Bitcoin had dropped 1.4% in the past 24 hours to approximately $113,648, while Ethereum fell 3.7% to $3,503. Other major assets like XRP, SOL, and DOGE also saw steep declines, with losses ranging from 1.5% to 3.7%. The downturn mirrored similar losses in traditional markets, with U.S. equities closing sharply lower on Friday, including a 2.24% drop in the Nasdaq Composite [1]. Traders appeared to be shifting capital away from risk-on assets and into cash or government securities, reflecting heightened macroeconomic uncertainty.

The selloff highlights the crypto market’s growing sensitivity to traditional macroeconomic indicators and geopolitical developments. While rate cuts could theoretically benefit digital assets by reducing real yields, the broader narrative of economic fragility has dominated investor sentiment. This environment has led to a flight to safety and a renewed focus on macro events, particularly ahead of key data releases later in the month [1].

Sources:

[1] Crypto Market Bloodbath: Three Reasons Traders Are in Risk-Off Mode (https://www.coindesk.com/markets/2025/08/02/crypto-market-bloodbath-three-reasons-traders-are-in-risk-off-mode)