Crypto Markets Crash as Strong Jobs Data Sends Rates Hike Odds Soaring
The crypto market took a hit today as Bitcoin plummeted below $80,000 after strong US jobs data was released. The number of new jobs added in August nearly tripled expectations at 162,000, with unemployment holding steady at 4.1%. This led to a swift reaction in the markets, with the probability of a Federal Reserve rate hike increasing rather than a cut.
Bitcoin dropped $1,600 in just three minutes, falling to $79,763.95, while Ethereum and XRP also took a hit, sitting at $2,461.41 and $1.41 respectively. The total crypto market cap still sits at $2.75 trillion despite the pullback.
The jobs data was welcomed as good news for the economy, but it worked against risk assets like gold, silver, and cryptocurrency. President Trump weighed in on the reaction, calling it 'crazy' that stocks fell after a stronger-than-expected jobs report, and described the market's response as living in a 'false reality'. He also called on the Fed to cut interest rates regardless of the strong jobs data.