Bitcoin News Today: Bitcoin and stocks plunge as weak jobs data boosts rate cut speculation

Bitcoin's price fluctuated sharply in response to U.S. employment data released on August 2, 2025, reigniting speculation about potential Federal Reserve rate cuts. The July jobs report showed only 73,000 new jobs added, significantly below the projected 115,000, and the unemployment rate rose to 4.2%[1]. The report also included downward revisions of 258,000 jobs for the previous two months, signaling a cooling labor market[1]. These developments pushed the probability of a September rate cut to over 80%, as measured by the CME FedWatch Tool, up from around 40% before the data was released[1].

Bitcoin initially dropped below $115,000 amid the data's release but later rebounded to reclaim the $116,000 level. The broader cryptocurrency market fell 3.43%, with altcoins particularly affected due to heightened risk aversion[1]. The decline mirrored a broader financial market selloff, with the S&P 500, Nasdaq, and Dow Jones slipping by 1.26%, 1.74%, and 1.04%, respectively[1]. U.S. crypto stocks, including Coinbase and Riot Platforms, plunged by as much as 16%[4], highlighting the synchronized downturn across asset classes.

Bitcoin's market dominance increased to 61.97% during the sell-off, while trading volume rose by 28.78% to $89.4 billion. However, the total market capitalization declined by 2.75%, and futures open interest dropped by 1.39%, with leveraged traders suffering $203.11 million in liquidation losses[1]. These figures reflect the heightened volatility in leveraged trading environments during periods of economic uncertainty.

Federal Reserve Chair Jerome Powell reiterated the central bank’s data-dependent approach to monetary policy, emphasizing that no decisions had been made regarding potential rate cuts in September. U.S. President Donald Trump, meanwhile, called for a “significant” rate cut and criticized Powell for maintaining a restrictive stance[1]. Lower interest rates are historically associated with increased investment in higher-risk assets, potentially benefiting cryptocurrencies by reducing capital costs[8].

The downward revisions in the employment data underscored the fragility of the current labor market, with 62% of the adjustments attributed to changes in education and seasonal employment[1]. As the economic outlook grew more uncertain, investors reassessed their positions, leading to heightened market sensitivity.

This episode highlighted the deepening integration of global financial markets, with cryptocurrencies increasingly influenced by the same macroeconomic forces as traditional asset classes. The synchronized drop in stocks and digital assets demonstrated the growing interdependence between equities, fiat currencies, and crypto markets[7]. The event reinforced the sensitivity of all asset types to key economic indicators and the evolving landscape of monetary policy expectations[8].

Source:

[1] https://news.bitcoin.com/bitcoin-and-stocks-tumble-on-weak-jobs-data/

[4] https://cointelegraph.com/news/crypto-stocks-tumble-alongside-btc-equities-as-tariff-fears-resurface

[7] https://www.ainvest.com/news/bitcoin-news-today-crypto-stocks-plunge-7-16-tariff-fears-weak-payrolls-data-2508/

[8] https://www.investopedia.com/dow-jones-today-08012025-11783196