1. Key Points
Research Suggests the July 2025 non-farm payroll (NFP) report, released on August 1, 2025, showed only 73,000 jobs added, well below the expected 110,000, triggering significant market volatility.
It seems likely that this weaker-than-expected data, coupled with Trump’s new tariff announcements, caused over $700 million in crypto liquidations, impacting Bitcoin, Ethereum, and altcoins.
The evidence leans toward a broader risk-off sentiment, with Bitcoin dropping below $113,000 and the total crypto market cap falling from $4 trillion to $3.69 trillion.
2. Introduction: Weak NFP Meets Strong Market Shock
The July 2025 non-farm payroll report, a crucial indicator of U.S. economic health, revealed a shocking job growth of just 73,000—a sharp miss from the expected 110,000. Released on August 1, 2025, this underwhelming figure, alongside Trump’s aggressive tariff moves, rattled global markets. In the crypto space, the reaction was severe: over $700 million in leveraged long positions were liquidated, with major coins like Bitcoin and Ethereum tumbling sharply, underscoring the deepening linkage between traditional macroeconomics and the digital asset world.
3. Understanding NFP: Why It Matters
The Non-Farm Payroll (NFP) report measures monthly job additions in non-agricultural sectors. It's a leading indicator of U.S. economic strength, influencing both traditional and digital markets. The July 2025 report not only missed forecasts but revealed troubling downward revisions:
June revised from 147,000 to just 14,000
May slashed by 125,000
Unemployment rose to 4.2%
These revisions reflect a cooling job market—potentially setting the stage for Fed rate cuts but simultaneously shaking investor confidence.
4. Market Reaction: Liquidations Wipe Out Bulls
Crypto markets responded immediately:
Bitcoin fell from ~$118,000 to below $113,000
Ethereum dropped 6.1% to $3,620
Altcoins like Solana and Cardano saw losses over 6.9% and 8.5%
Total crypto market cap dipped by $310 billion, from $4T to $3.69T
According to Coinglass and MITrade, over $707 million in long positions were liquidated within 24 hours. The Crypto Fear and Greed Index fell from 70 to 60, signaling a rapid shift in investor sentiment.
5. Amplifiers: Why the Crash Was So Severe
Several factors intensified the impact:
a. Economic Shock
The missed forecast and massive downward revisions signaled an unexpectedly fragile labor market, stoking fears of economic slowdown.
b. Trump’s Tariffs
Announced simultaneously, the new tariffs—including 50% duties on imports from Switzerland, India, and South Africa—heightened global uncertainty. This macroeconomic stressor pushed investors toward safer assets and away from volatile markets like crypto.
c. High Leverage
The crypto market had been over-leveraged following recent all-time highs. The NFP data acted as a catalyst, triggering a wave of stop-losses and forced liquidations, snowballing into a full-blown crash.
6. Market Snapshot: Key Figures
Metric Before Aug 1, 2025 After Aug 1, 2025 Change
Bitcoin Price ~$118,000 ~$113,000 -4.2%
Ethereum Price ~$3,850 ~$3,620 -6.1%
Total Crypto Market Cap $4 trillion $3.69 trillion -7.75%
Liquidations (24h) N/A $707 million (longs) N/A
Fear & Greed Index ~70 (Greed) 60 (Fear) -10 points
These figures, pulled from MITrade and Coinglass, depict a market in distress and underscore the importance of macroeconomic awareness for crypto traders.
7. Lessons for Crypto Traders
This event is a reminder that crypto, while decentralized in architecture, is deeply interconnected with global macroeconomic conditions. Key takeaways:
Watch major economic reports (NFP, CPI, Fed statements)
Avoid excessive leverage, especially near high-volatility events
Diversify across asset classes
Prepare for macro shocks like tariffs and political events
A weakened labor market may prompt the Federal Reserve to consider rate cuts, which could stimulate risk assets in the long term—but not without volatility.
8. Conclusion and Call to Action
The July 2025 NFP report has proven to be more than a labor market update—it’s a wake-up call for crypto investors. With over $700 million wiped out, it's clear that macro trends can—and will—dictate the flow of capital in digital markets. As we await the Fed’s next move and monitor global trade tensions, smart investors will position themselves with informed strategies and risk awareness.
👉 What’s your take? Is this a short-term correction—or a deeper market reset?
💬 Drop your insights in the comments and let’s discuss.
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