After the U.S. employment data in August significantly exceeded expectations, the market quickly adjusted its assessment of the Federal Reserve's policy path. Expectations for interest rate cuts cooled down, and risk assets came under pressure as a result. Bitcoin fell below $80,000 in the short term, and Ethereum and XRP also saw corresponding declines.
New employment in August exceeded expectations.
Reports show that the United States added 162,000 new jobs in August, significantly exceeding the market's expectation of 55,000 jobs. The unemployment rate remained at 4.1%, in line with expectations, and the number of employed people in July was also revised upward to 43,000.
Generally speaking, strong employment data indicates that the economy's resilience remains. However, for the current market, this actually weakens the necessity for the Federal Reserve to cut interest rates as soon as possible. The article states that after the data was released, the market quickly shifted its bets from a reduction in interest rates to an increase.
Bitcoin tumbles $1,600 in just three minutes
After the data was released, Bitcoin briefly fell below $80,000, dropping by about $1,600 in just three minutes. At the time of publication, Bitcoin was trading at $79,763.95, with a 24-hour decline of 1.4%.
Ethereum is trading at $2,461.41, while XRP is at $1.41, also showing weakness within the day. Reports cite Bull Theory stating that within 25 minutes after the data was released, the combined market value of gold, silver, and crypto assets evaporated by approximately $835 billion.
Trump criticizes market reaction
Trump then spoke about market trends, stating that the stock market's decline following stronger-than-expected employment reports was "crazy," and described this reaction as if people were in a "false reality."
He once again called for the Federal Reserve to cut interest rates and stated that if the central bank did not take action, the United States would "cease trading with countries that have a trade deficit with the US." Trump said that the Federal Reserve "must become smarter."
Zcash rose 13% against the trend
While most crypto assets are declining, Zcash has become one of the few tokens to rise against the trend. Reports indicate that Zcash has increased by 13%, with its price rising to $1,034.80.
In addition, the article also mentions the inflationary pressures brought about by energy prices. According to data from Kobeissi, the national average price of diesel in the United States has risen to $5.62 per gallon, setting a new historical high; against the backdrop of the ongoing Iran war, diesel inventories are also at historically low levels at this time.
Currently, the total market value of the crypto market remains around $2.75 trillion. This fluctuation indicates that, in an environment of rapidly changing interest rate expectations, crypto assets are still highly sensitive to U.S. macroeconomic data.
