Digital Assets Extend Losses as Soft U.S. Employment Data Lifts Safe Havens

Bitcoin, Stocks Sink to Session Lows as Weak Jobs Data Triggers Flight to Safety

Markets turned sharply lower late Friday as investors reacted to unexpectedly soft U.S. labor data, which is fueling expectations of a Federal Reserve rate cut as soon as September.

The July jobs report, released Friday morning, showed a notable slowdown in hiring, compounded by steep downward revisions to June and May figures. The three-month average now reflects the weakest stretch of job growth since the COVID-19 shutdowns in 2020.

The disappointing data pushed the 10-year U.S. Treasury yield down 14 basis points to 4.22%, while gold rallied 1.5% to $3,400 — closing in on its all-time high. Investors appeared to be rotating into traditional safe havens amid growing economic uncertainty and the prospect of Fed easing.

Risk assets, however, failed to benefit. With roughly 90 minutes left in the U.S. trading session, both bitcoin and equities were deep in the red. The Nasdaq Composite had dropped 2.5%, while bitcoin fell more than 3% to $113,800.

Among major cryptocurrencies, bitcoin held up relatively well. Ethereum (ETH), Solana (SOL), Binance Coin (BNB), and Dogecoin (DOGE) all declined by about 6%. XRP showed relative strength, slipping just 2.9%.

Trump Attacks Fed and Labor Department Over Data

Reacting to the report, former President Donald Trump posted on Truth Social: “Jerome ‘Too Late’ Powell is a disaster. DROP THE RATE.” Minutes later, he called for the removal of Dr. Erika McEntarfer, head of the Bureau of Labor Statistics, accusing her of manipulating employment figures for political purposes.

Crypto Stocks Hammered

Crypto-linked equities were hit hard as sentiment deteriorated. Coinbase (COIN) plunged nearly 18%, weighed down by Friday’s risk-off tone and a weak earnings report Thursday evening. Robinhood (HOOD), which also reported earnings, was down 3.1%.

Bitcoin miners also suffered steep losses. Riot Platforms (RIOT) dropped 17%, while Marathon Digital (MARA) slipped 3%. Circle (CRCL), the stablecoin issuer planning a public listing, declined 7.5%. MicroStrategy (MSTR), known for holding large amounts of bitcoin on its balance sheet, also fell 7.5%.

With labor market softness and rate cut bets mounting, traditional assets like gold and bonds appear to be regaining favor — while crypto continues to bear the brunt of volatility.