Bitcoin dropped below $80,000, falling $1,600 in just three minutes, after August jobs data came in far stronger than economists expected, raising the odds of a Federal Reserve rate hike rather than a cut. Bitcoin is now trading at $79,763.95, down 1.4% over 24 hours, while Ethereum sits at $2,461.41 and XRP at $1.41, both negative on the day.
Why Strong Jobs Data Hit Crypto Hard
The US economy added 162,000 jobs in August, nearly tripling the 55,000 expected. Unemployment held steady at 4.1%, in line with forecasts, and July’s job figure was revised up by 43,000, turning that month positive as well.
Normally strong economic data would be welcome news. But in this case, it worked against risk assets. Stronger job growth reduces pressure on the Fed to cut rates, and markets quickly priced in a higher probability of a hike instead, according to Bull Theory. The reaction was swift as $835 billion was wiped out from gold, silver and crypto combined within 25 minutes of the data release.
Trump Calls the Reaction “Crazy”
President Trump weighed in directly on the market’s response, calling it “crazy” that stocks fell after a stronger-than-expected jobs report and describing the reaction as living in a “false reality.”
Trump also called on the Fed to cut interest rates regardless of the strong jobs data, and threatened to “stop trading with countries with which we have a deficit” if the central bank doesn’t act. “The Fed must get smart,” Trump said.
Zcash Bucks the Trend
While most of the market retreated, Zcash stood out with a 13% gain, pushing its price to $1,034.80, making it one of the few major tokens moving higher through the selloff.
Other Pressures Building
The jobs shock lands alongside separate inflationary pressure from energy markets. US national diesel prices hit a record $5.62 per gallon, surpassing the previous high from June 2022, with diesel inventories at a record low for this time of year amid the ongoing Iran war, according to Kobeissi.
What It Means
With the total crypto market cap still sitting at $2.75 trillion despite the pullback, today’s move shows how sensitive risk assets remain to Fed rate expectations, even when the underlying economic news is objectively strong. Whether this proves a short-lived reaction or the start of a deeper repricing may depend on how the Fed responds to both the stronger labor data and mounting political pressure from the White House.
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