Bitcoin led a broad cryptocurrency market decline, dropping 2.1% to near $115,500 following the release of unexpectedly weak U.S. employment data. Ethereum, XRP, and Solana similarly recorded losses in an market-wide downturn fueled by economic concerns.
The catalyst emerged from U.S. jobs figures showing only 73,000 positions added in July. Compounding the negative sentiment, revisions to previous months revealed an additional loss of 258,000 jobs across May and June. This significantly heightened market expectations for Federal Reserve rate cuts, with probabilities now near 78%.
Simultaneous announcements of new U.S. import tariffs on goods from over 60 trading partners, including duty increases on Canadian and Brazilian products, introduced further market complexities. The tariffs amplified existing uncertainties regarding global economic stability.
The volatility extended beyond digital assets, with traditional equity markets also retreating. Major indices including the S&P 500, Nasdaq, and Dow Jones posted declines, reflecting widespread risk aversion among investors.
Despite current bearish pressures, analysts noted potential silver linings. Increased market liquidity from anticipated Federal Reserve monetary easing could benefit Bitcoin and other cryptocurrencies in the longer term, though near-term sentiment remains dominated by macroeconomic headwinds.