The U.S. employment report for July became a trigger for panic in cryptocurrencies. Bitcoin and Ethereum experienced sharp price drops. This article analyzes the key factors that led to this situation.
NFP Data Misses Expectations
On August 1, the U.S. Bureau of Labor Statistics released its July employment report:
- Actual jobs added: 73,000 - Forecast: 110,000 - Previous (revised): 14,000 (down from 147,000) - Unemployment rate: 4.2%, up 0.1 percentage points.
The data not only missed expectations but marked the lowest monthly job growth in nearly a year.
Political Uncertainty and Its Impact
Following the release of the report, Donald Trump sharply criticized the NFP data, accusing it of manipulation and demanding the removal of the Bureau of Labor Statistics head. He also targeted the Federal Reserve's actions.
This creates new risks: - Erosion of trust in data - Doubts over Fed independence - Increased geopolitical tensions resulting in a flight to safety.
Crypto Market: Liquidations and Consequences
Within 12 hours post-NFP, the crypto market experienced a significant drop.
- Bitcoin bottomed at: 112,751 USDT - Ethereum bottomed at: 3,431 USDT
The total liquidations reached $726 million, with $640 million in long positions. Crypto-related stocks also suffered losses: - Coinbase: -16.7% - Riot Platforms: -17.75% - Circle: -8.4%.
Data shows concentrated sell-offs by major holders in the crypto market.
The NFP event highlights the crypto market's sensitivity to external factors. It reminds investors to remain calm and objective while considering the associated risks of political involvement and economic indicators.
