Crypto markets briefly rallied on Friday after U.S. August employment data showed only 22,000 jobs added and a rise in the unemployment rate to 4.3%, a print that increased odds of near-term monetary easing from the Federal Reserve. That optimism, however, reversed quickly once U.S. equities opened, triggering a fast, broad-based crypto sell-off led by ether (ETH).
Ether fell nearly 4% in minutes and was trading around $4,279 at the low end of the move, later settling about 1.5% lower on the day. Solana (SOL) and XRP experienced similar percentage drops — SOL near $203.49 and XRP about $2.82. Bitcoin outperformed the majors during the slide, slipping roughly 2.5% and hovering close to $110,500–$110,720.
Equities gave back early gains with the Nasdaq down about 0.6% and the S&P 500 roughly 0.7%. Gold, which spiked to a record near $3,654 after the jobs release, remained a beneficiary and was still up about 0.9% for the session.
Market participants and economists reacted to the weak payrolls reading as a near-certain trigger for a September rate cut — traders on the CME FedWatch tool pared the probability of a standard 25-basis-point move from about 100% to 86%, while assigning roughly 14% odds to a larger 50-basis-point cut. Commentators including Heather Long and analysts at Fitch highlighted persistent labor-market weakness as the driver behind expectations for imminent easing.
Why the rally reversed so fast
The abrupt reversal reflects several dynamics: algorithmic trading and quick profit-taking often amplify initial moves; cross-asset flows linked to U.S. equity liquidity can flip sentiment once stocks roll over; and large spot or derivatives orders in concentrated tokens like ETH can create outsized short-term price moves. In plain terms, the jobs report opened the door for a rally on easing hopes — but the market’s fragile risk appetite and intraday positioning produced a fast pullback.
Crypto-related equities also fell: Coinbase (COIN) slipped ~4%, Circle (CRLC) about 7.5%, MicroStrategy (MSTR) roughly 1.5%, and MARA was down ~3.2%. Names tied to ether treasuries such as Bitmine Immersion (BMNR) and Sharplink Gaming (SBET) were weaker by around 5–6%.
Takeaway: A Fed rate cut remains the consensus outcome in the coming weeks, which could be supportive for crypto over a longer horizon. Near term, expect elevated volatility: macro prints, equity moves and concentrated token flows can produce rapid reversals. Investors should recognize the higher short-term risk and size positions accordingly.
Source: CoinDesk. Read the original coverage for full details.
