Crypto Market Crisis: Three Key Factors Prompt Traders to Exercise Caution
A bleak U.S. jobs report, escalating geopolitical tensions, and fears of a recession have led to a significant sell-off in the cryptocurrency market, spearheaded by declines in Bitcoin and Ethereum.
Crypto Market Crisis: Three Key Factors Prompt Traders to Exercise Caution
A bleak U.S. jobs report, escalating geopolitical tensions, and fears of a recession have led to a significant sell-off in the cryptocurrency market, spearheaded by declines in Bitcoin and Ethereum.
BTC slipped nearly 2% in 24 hours
What to know:
- The July U.S. jobs report showed just 73,000 jobs added, accompanied by a 258,000 downward revision to the May and June totals.
- Former President Trump accused the U.S. Bureau of Labor Statistics’ commissioner of manipulating job data and ordered her removal.
- Although rate cuts from the Federal Reserve seem likely, they are perceived as a response to economic weakness, rather than a sign of optimism.
As of the writing, Bitcoin (BTC) was traded around $113,648, down 1.4% in the past 24 hours. Ethereum (ETH), along with XRP, SOL, and DOGE, recorded notable declines, with ETH down 3.7% to $3,503.
U.S. stocks also took a hit, with declines across major indices, driven by the disappointing jobs report and increasing tensions with Russia.
The July Jobs Report Was a Disaster — and a Surprise
The U.S. Bureau of Labor Statistics reported that the economy added just 73,000 jobs in July, far below expectations, in addition to significant downward revisions to previous months.
Trump Accuses BLS Commissioner of Election Interference, Orders Chief Fired
Trump swiftly responded to the jobs report, accusing Commissioner Erika McEntarfer of corrupting employment data in light of the upcoming election. He expressed the intention to have her dismissed immediately.
Trump’s Nuclear Submarine Post Escalates Russia Tensions
Following the jobs report, Trump announced the repositioning of two U.S. nuclear submarines, spurred by remarks from Russia’s Medvedev. This declaration raised concerns about escalating diplomatic tensions.
Fed Rate Cut Expectations Rise — But So Do U.S. Recession Fears
The dismal job data led to increased speculation regarding a rate cut from the Fed, but the perception of such cuts as a reaction to a deteriorating economy is contributing to market unease.
