Crypto Markets Reverse Gains Despite Weak U.S. Jobs Report

Friday’s soft U.S. employment data briefly lifted risk assets, but the rally quickly faded as crypto prices, equities, and related stocks slid into the red.

Nonfarm payrolls rose by just 22,000 in August, far below expectations, strengthening the case for a Federal Reserve rate cut later this month. Initially, bitcoin, ether, and other major tokens climbed alongside stocks, bonds, and gold as traders priced in the possibility of a 25–50 basis point cut.

Momentum, however, turned lower after Wall Street’s open. Ether fell nearly 4% in minutes and was last down 1.5% at $4,279. Solana dropped to $202.76 and XRP to $2.81, while bitcoin outperformed slightly with a 2.5% decline, holding near $110,500.

Stocks followed a similar trajectory, with the Nasdaq and S&P 500 slipping 0.6% and 0.7%, respectively. Gold retained safe-haven demand, still up 0.9% despite easing from a fresh record high of $3,654.

The weak jobs print is reinforcing expectations for policy easing. CME futures now show 86% odds of a 25 bp cut and 14% for a 50 bp move. Analysts warn the Fed will likely prioritize labor market stability after four straight months of manufacturing job losses.

Crypto-related equities continued their slide, with Coinbase down 4%, Circle by 7.5%, Marathon by 3.2%, and MicroStrategy by 1.5%. Ether-focused names Bitmine Immersion and Sharplink Gaming shed 5.4% and 6%.