Bitcoin and stocks hit session lows in U.S. afternoon trading on Friday, reflecting a broader risk-off sentiment following the release of disappointing jobs data. In stark contrast, bonds and gold rallied thanks to softer employment figures.
The U.S. Department of Labor reported that just 73,000 jobs were added in July, with revisions downgrading earlier estimates for June and May, marking the weakest employment growth over three months since the onset of the COVID-19 pandemic. This significant decline in job growth is expected to pressure the Federal Reserve into resuming interest rate cuts at its upcoming meeting in September.
In response to the bleak jobs report, 10-year U.S. Treasury yields fell by 14 basis points to 4.22%, while gold prices surged by 1.5% to $3,400 per ounce, nearing record highs.
Currently, both bitcoin and stocks are struggling, registering significant downturns. Bitcoin has dropped more than 3% to approximately $113,800. Other cryptocurrencies, like Ether and Solana, have seen losses around 6%. Interestingly, XRP has fared slightly better, down only 2.9%.
These market movements occur against a backdrop of political criticism directed at Federal Reserve Chair Jerome Powell regarding his handling of interest rates, with President Trump labeling Powell a “disaster” on his social media platform, urging immediate rate cuts.
In the equity market, crypto-focused stocks have taken a hit as well; Coinbase saw a steep decline of nearly 18%, and related firms like Riot Platforms and MARA Holdings are also reporting substantial losses. The day’s events illustrate a stark divide in market responses, with traditional safe-haven assets gaining ground amid a climate of uncertainty for riskier assets like cryptocurrencies.
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