Bitcoin News Today: Bitcoin and stocks plunge as weak U.S. jobs data fuels rate cut bets and market sell-off

Investor sentiment turned sharply negative as newly released U.S. jobs data came in below expectations, triggering a broad sell-off across equities and cryptocurrencies. The market's reaction underscored deepening concerns over a slowing economy and the potential for tighter monetary policy. The report revealed that only 73,000 jobs were added in July, significantly below the 115,000 anticipated by economists. Moreover, the data from May and June were revised downward by a combined 258,000 jobs, casting further doubt on the strength of the labor market [1].

Bitcoin fell below $115,000 in the immediate aftermath, dropping 2.88% from the previous day and trading at $114,569.45 at the time of reporting. The S&P 500, Nasdaq, and Dow Jones all recorded declines of 1.26%, 1.74%, and 1.04% respectively. The broader crypto market also suffered, with a 3.43% drop in overall value [1]. The unemployment rate increased to 4.2% in July from 4.1% in June, aligning with expectations but failing to reassure investors.

The downward revisions to previous months' job numbers were cited as a key factor in the market's negative reaction. Labor Secretary Lori Chavez-DeRemer acknowledged the unexpected nature of the revisions, noting that 62% of them were related to education and seasonal workforce adjustments. Despite this, the data painted a more pessimistic view of the labor market than previously reported [1].

The market's response also reflected a growing anticipation for a U.S. Federal Reserve rate cut in September. The probability of such a cut jumped from around 40% to nearly 83% following the data release, according to the CME Fedwatch Tool. U.S. President Donald Trump reiterated his call for a significant rate cut, criticizing Fed Chair Jerome Powell and emphasizing the economic impact of new tariffs [1].

The sell-off extended beyond Bitcoin to include U.S. crypto stocks, with firms like Coinbase, Riot Platforms, and CleanSpark experiencing sharp declines. Some shares dropped as much as 16%, driven by renewed fears of tariffs and economic uncertainty. This synchronized downturn highlighted the increasing correlation between traditional financial markets and digital assets [4].

Bitcoin’s dominance in the crypto market rose slightly to 61.97%, suggesting it fared marginally better than the average decline in the broader crypto space. However, 24-hour trading volume increased by 28.78% to $89.4 billion, while market capitalization fell by 2.75%. Futures open interest declined by 1.39%, and liquidations totaled $203.11 million, with long positions suffering the brunt of the losses [1].

The synchronized movement across asset classes reflected a broader trend of risk aversion. Investors appeared to be adjusting positions across multiple markets in response to the heightened macroeconomic uncertainty. This development reinforces the growing integration of cryptocurrencies with traditional financial systems, where digital assets are no longer seen as isolated from broader economic conditions [7].

With central banks remaining cautious, even minor shifts in economic data can trigger significant market corrections. The recent sell-off serves as a stark reminder of how sensitive financial assets are to macroeconomic signals, particularly in an environment of ongoing global trade tensions and shifting fiscal policies [8].

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

[2] https://www.cnbc.com/2025/07/31/stock-market-today-live-updates.html

[3] https://www.bloomberg.com/news/articles/2025-08-01/s-p-500-slides-after-weak-jobs-data-trump-s-new-tariff-salvos

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

[5] https://www.ainvest.com/news/bitcoin-news-today-crypto-stocks-plunge-7-16-weak-jobs-data-tariff-fears-trigger-market-sell-2508/

[6] https://www.nasdaq.com/articles/us-stocks-move-sharply-lower-new-tariffs-weak-jobs-data

[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