Why Is Crypto Crashing Today?
1. Jobs Data Came in Much Weaker Than Expected
The U.S. added just 73,000 jobs in July, well below the consensus of around 110,000. Combined revisions for May and June cut 258,000 positions from earlier estimates—suggesting that labor demand is slowing rapidly. The unemployment rate ticked up to 4.2%, its highest level in over two years .
2. Markets Recoiled Immediately
• Equities dropped across major indexes as investors reacted to mounting recession fears.
• The U.S. dollar slipped by about 1%, pressured by downward momentum in bond yields and policy uncertainty   .
• Betting on a September Fed rate cut spiked, with expectations jumping from roughly 40% to over 80% in a matter of hours .
3. Trump’s Reaction Injected Additional Volatility
President Trump, who has been vocally pushing for Fed rate cuts, was presented with precisely the kind of data that would bolster his case—only to denounce the report as “rigged”, fire Bureau of Labor Statistics Commissioner William Beach (the official who released the report), and again criticize Fed Chair Jerome Powell, suggesting he should be “let go” .
4. Investors Now Confront Mixed Signals
• Trump’s policy agenda aligns with monetary easing, yet his public demolition of the report that supports that agenda sows confusion.
• The market is left wondering: Is this good news or bad? Bullish or bearish? Pure chaos?
5. Broader Implication: Eroding Trust in Economic Data
The real concern extends beyond jobs or interest rates—it’s about the credibility of official economic statistics. If data is increasingly politicized, how can investors act with confidence? **Trust, not just the job number, matters now.
⸻
Bottom line: Weak employment figures swung the macro narrative, igniting expectations of Fed easing—which generally supports crypto. But political meddling in economic reporting has overshadowed market clarity, creating the kind of uncertainty that typically discounts risk assets like BTC and ETH. Cháos is the new trend.
