02.08.2025 13:12
Weaker-than-expected July jobs data, coupled with downward revisions to previous months, revealed the weakest three-month employment growth since the 2020 COVID-19 lockdowns. This significant economic indicator likely signals a shift in the Federal Reserve's strategy. The news suggests an imminent end to the Federal Reserve's cautious approach, paving the way for a resumption of interest rate cuts at their September meeting.
This development has triggered a noticeable market reaction. The yield on the 10-year U.S. Treasury bond experienced a sharp 14-basis-point drop, settling at 4.22%. Conversely, gold prices surged by 1.5%, reaching $3,400 per ounce, nearing its all-time high. However, the impact on other interest-rate sensitive assets, such as bitcoin and stocks, proved less favorable.
During the late stages of the U.S. trading session, both bitcoin and the Nasdaq Composite Index reached their session lows. Bitcoin experienced a decline exceeding 3%, trading at $113,800, while the Nasdaq plummeted by 2.5%. Other cryptocurrencies fared even worse, with Ethereum (ETH), Solana (SOL), BNB, and Dogecoin all exhibiting losses around 6%. XRP, however, demonstrated relative resilience, falling only 2.9%.
Adding to the market turbulence, former President Trump voiced strong criticism of Federal Reserve Chairman Jerome Powell on Truth Social, demanding an immediate interest rate cut. He further escalated his criticism by calling for the dismissal of Dr. Erika McEntarfer, head of the Bureau of Labor Statistics, alleging manipulation of employment data.
The negative sentiment extended to crypto-related equities. Coinbase's stock price experienced a dramatic near-18% drop, exacerbated by a disappointing earnings report released the previous evening. While Robinhood saw a more modest 3.1% decline, the cryptocurrency mining company Riot Platforms suffered a significant 17% fall, mirroring a similar downturn for MARA Holdings. These developments paint a picture of considerable market uncertainty stemming from the unexpected employment figures and the subsequent political commentary.
