Bitcoin, Stocks Slide as Soft Jobs Data Fuels Rate Cut Bets; Gold, Bonds Surge

Bitcoin and major stock indices fell to session lows late Friday as investors digested a weaker-than-expected U.S. jobs report and sharp downward revisions to prior months, deepening concerns over the health of the labor market.

The July employment report, released Friday morning, showed a marked slowdown in hiring. Combined with significant revisions lower for both June and May, it marked the weakest three-month stretch for job creation since the pandemic-era shutdowns of 2020.

The disappointing data has markets increasingly convinced that the Federal Reserve will resume rate cuts as early as its September meeting. Expectations for easing sent yields tumbling, with the 10-year U.S. Treasury yield dropping 14 basis points to 4.22%. Gold surged 1.5% to $3,400 per ounce, nearing its all-time high, as investors sought refuge in traditional safe-haven assets.

Risk assets, however, saw little relief. With roughly 90 minutes left in the U.S. trading session, the Nasdaq was down 2.5%, and bitcoin had dropped over 3% to $113,800. That made BTC one of the better performers among major digital assets.

Ethereum (ETH), Solana (SOL), BNB, and Dogecoin (DOGE) each posted losses of around 6%. XRP proved relatively resilient, down just 2.9%.

Political Pressure Intensifies

Shortly after the jobs report, former President Donald Trump criticized Fed Chair Jerome Powell on Truth Social, writing: “Jerome ‘Too Late’ Powell is a disaster. DROP THE RATE.” He later called for the firing of Dr. Erika McEntarfer, Commissioner of Labor Statistics, alleging political manipulation of employment data.

Crypto-Linked Stocks Tank

Crypto-related equities were hit hard. Coinbase (COIN) plunged nearly 18% as risk sentiment deteriorated and investors reacted to a disappointing earnings report released Thursday evening. Robinhood (HOOD) fared better but still slipped 3.1%.

Bitcoin mining firms also suffered. Riot Platforms (RIOT) dropped 17%, while Marathon Digital Holdings (MARA) slid 3%. Among large-cap crypto-exposed names, stablecoin issuer Circle (CRCL) declined 7.5%, matching the loss in bitcoin treasury holder MicroStrategy (MSTR).