Bitcoin News Today: Bitcoin and Stocks Plunge as Weak Jobs Data Spur Rate Cut Speculation

The U.S. July 2025 employment data triggered a sharp market reaction, with the cryptocurrency sector and traditional equities both experiencing significant declines. The report revealed only 73,000 jobs were added in July, well below the 115,000 forecast, with downward revisions of 258,000 jobs for May and June combined [1]. The unemployment rate rose to 4.2% as expected, but the overall figures pointed to a cooling labor market and raised concerns over broader economic stability [1].

Bitcoin dropped 2.88% to $114,569.45, falling below $115,000 in the wake of the report [1]. The broader crypto market lost 3.43% of its value, with altcoins underperforming as risk aversion intensified. The S&P 500, Nasdaq, and Dow Jones also fell by 1.26%, 1.74%, and 1.04%, respectively, reflecting a synchronized downturn across asset classes [1]. U.S. crypto stocks, including Coinbase, Riot Platforms, and CleanSpark, suffered as much as 16% losses [4].

The data increased speculation around a potential Federal Reserve rate cut in September. According to the CME Fedwatch Tool, the probability of such a cut climbed from approximately 40% to nearly 83% [1]. U.S. President Donald Trump reinforced these expectations, demanding a "significant" rate cut and criticizing Fed Chair Jerome Powell for his current monetary stance [1]. Historically, lower interest rates have benefited cryptocurrencies by reducing capital costs and encouraging investment in riskier assets [8].

Bitcoin’s market dominance rose slightly to 61.97% during the sell-off [1], while trading volume surged by 28.78% to $89.4 billion. Market capitalization declined by 2.75%, and futures open interest fell by 1.39% as long positions faced liquidation losses of $203.11 million [1]. The sharp price movement disproportionately affected leveraged traders.

The downward revisions in the employment data highlighted the fragility of the U.S. labor market. Labor Secretary Lori Chavez-DeRemer noted that 62% of the revisions were linked to education and seasonal workforce adjustments [1]. Nonetheless, the data reinforced a more pessimistic economic outlook, prompting investors to recalibrate their positions amid heightened uncertainty [7].

The synchronized sell-off across traditional and digital assets underscored the increasing integration of financial markets. Cryptocurrencies are no longer viewed in isolation but as part of a broader financial ecosystem shaped by the same macroeconomic forces [7]. The event reaffirmed how sensitive both fiat and digital assets are to key economic indicators, particularly in a context of global trade tensions and evolving 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