Bitcoin News Today: Bitcoin Dips Nearly 4% as Fed Caution and Weak Jobs Data Spur Sell-Off

Bitcoin faced a notable correction amid macroeconomic uncertainties tied to Federal Reserve policy and weak U.S. employment data, with the cryptocurrency falling nearly 4% in early August 2025. The decline followed comments from Fed Chair Jerome Powell, who expressed caution about a potential rate cut in September, emphasizing the still-solid labor market and inflation risks. This signaled that the Fed may hold rates longer than expected, dampening market optimism and contributing to Bitcoin’s drop to around $115,800 [1].

The bearish pressure was further reinforced by the U.S. Bureau of Labor Statistics' revised nonfarm payroll (NFP) data, which showed July job creation at just 73,000—well below the projected 110,000. The data also revised down the June and May figures, highlighting the weakest job growth in five years. This labor market slowdown triggered a sharp sell-off in both U.S. stocks and cryptocurrencies, with Bitcoin dropping below $112,000 and Ethereum prices also retreating [2].

Spot ETF inflows, which had fueled crypto gains in July, reversed sharply in early August. The largest outflow since February occurred on August 1, dragging down Ethereum-linked equities despite over $10 billion in corporate accumulation. Sharplink Gaming and Bitmine, two major Ethereum-related firms, both dropped by more than 23% and 30%, respectively, underscoring the growing bearish sentiment across the market [3].

Arthur Hayes, former co-founder of BitMEX and current CIO of Maelstrom Fund, predicted a potential 19% correction in Bitcoin and Ethereum prices, citing weak credit generation, rising U.S. tariffs, and lackluster job growth as key triggers. His forecast placed Bitcoin at around $100,000 and Ethereum near $3,000. In line with his bearish outlook, Hayes reportedly liquidated over $13 million in Ethereum and Ethena, converting the proceeds into USDC as a macroeconomic hedge [4]. This move aligns with a broader defensive trend among traders, who increasingly mirror traditional financial behaviors in response to macroeconomic signals such as employment trends and interest rate expectations.

Market sentiment now hinges on the U.S. stock market’s ability to recover from the recent downturn. Historically, employment data revisions have not caused prolonged volatility, but the current correction has been amplified by prior stock highs. A sustained rebound could help restore crypto prices, while continued weakness may pressure the Fed to reconsider its policy stance, potentially reshaping the trajectory of crypto markets in the near term [5].

On-chain metrics also reflect growing pessimism. The Ethereum holder accumulation ratio fell to 27.57%, the lowest in two months, indicating reduced investor buying pressure. Influencers and analysts alike have pointed to the data as signs of a potential deeper correction, although some remain cautious about long-term adoption and institutional interest as counterbalancing factors [6].

In summary, Bitcoin’s recent price decline reflects a convergence of Fed policy uncertainty, weak labor data, and deteriorating investor sentiment. While structural adoption and institutional interest offer some optimism, the dominant narrative is one of macroeconomic caution. As the market watches for signs of recovery in U.S. stocks and potential shifts in Fed policy, the crypto space remains in a phase of heightened volatility and uncertainty.