Bitcoin faced a 4% price correction, sliding to $115,800 following Federal Reserve Chair Jerome Powell’s ambiguous comments regarding potential September rate cuts and disappointing U.S. employment figures. The cryptocurrency’s decline underscores mounting market apprehensions about economic deceleration and eroding investor confidence.
Powell’s cautious stance on monetary policy direction triggered immediate bearish reactions across digital asset markets. Concurrently, revised U.S. nonfarm payroll data revealed only 73,000 jobs created in July—significantly below the projected 110,000—with downward adjustments also applied to May and June figures. These indicators intensified fears of broader macroeconomic weakening.
Spot Bitcoin ETFs experienced a dramatic reversal, recording their largest single-day outflow since February. Major Ethereum-focused companies witnessed substantial stock devaluations despite strategic crypto accumulations exceeding $10 billion. Market sentiment further deteriorated as Ethereum’s holder accumulation ratio plunged to a two-month low of 27.57%, signaling diminished buying pressure.
The crypto market’s near-term trajectory remains heavily dependent on U.S. equity markets, which have historically recovered from negative payroll revisions. Analysts highlight this correlation as critical for potential cryptocurrency stabilization in the current climate of economic uncertainty.