Jobs Data Fails to Sustain Crypto Bounce; Ether Leads Declines
A weaker-than-expected U.S. jobs report sparked a fleeting rally in crypto markets on Friday before selling pressure returned, led by ether.
The Bureau of Labor Statistics reported just 22,000 new jobs in August, far below forecasts, reinforcing bets on imminent Fed rate cuts. Traders initially pushed bitcoin and ether higher, while gold surged to a record $3,654. But by midday, the momentum collapsed.
Ether dropped 4% from intraday highs and closed down 1.5% at $4,279. Solana and XRP matched the pullback, while bitcoin lost 2.5% but remained marginally higher on a 24-hour basis.
The reversal mirrors equity markets, where the Nasdaq slipped 0.6% and S&P 500 0.7%. CME FedWatch data now places only an 86% probability on a 25 bp cut, with a 14% chance the Fed delivers 50. Economists at Fitch and Navy Federal signaled growing urgency for cuts, citing persistent labor market weakness.
Crypto-linked stocks extended weekly losses: Coinbase -4%, Circle -7.5%, Marathon -3.2%, and MicroStrategy -1.5%. Ether treasury holders Bitmine Immersion and Sharplink Gaming also tumbled more than 5%.
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