Crypto Prices Plummet Amid Trump's Trade Threat and Surprising US Jobs Report
Crypto prices have plummeted today, with Bitcoin falling to $79,693.31, Ethereum slipping to $2,458.12, and XRP dropping to $1.41.
The losses follow a near 4% bounce in the crypto market on September 4, but this time sentiment has flipped red due to a confluence of events.
According to economists, President Trump's threat to halt trade with countries that run a surplus with the US could backfire badly, triggering shortages and pushing prices higher. If the Fed does not cut rates at the September 16 meeting, traders should brace for a sharper drop, not a recovery.
The market has also been impacted by a hot US jobs report, which added 162,000 jobs in a month, nearly tripling forecasts, raising fears of a rate hike instead of a cut. Additionally, hardware wallet maker Trezor confirmed that a data breach at its former shipping partner ShipMonk affects more customers than first reported.
Traders are watching the next Fed rate decision on September 16, after President Trump's threat to halt trade with countries running a surplus with the US.