Crypto Stocks Fall on Weak US Jobs Data, Tariff Threats
Crypto stocks plunged after the US Bureau of Labor Statistics reported just 73,000 new jobs in July versus 100,000 expected. Weak nonfarm payrolls intensified market volatility and raised recession concerns. Renewed US tariff threats of 10%–41% on rerouted Chinese goods further dented investor sentiment. Bitcoin slid below $115,000 from near $120,000 highs, amplifying pressure on crypto stocks that track BTC price movements.
Persistent core PCE inflation clouds the Federal Reserve’s rate cut outlook. Futures markets still price in multiple Fed rate cuts later this year, but current data suggests economic headwinds will persist. Expert Jeffrey Schulze at ClearBridge Investments warns that weak job growth combined with rising tariffs could further contract the labour market.
Traders should monitor US nonfarm payrolls, tariff negotiations and Bitcoin price trends. A sustained rebound in BTC above $120,000 could support a recovery in crypto stocks. Conversely, prolonged labour weakness or higher tariffs may keep risk assets under pressure.
Bearish
The combination of weak US nonfarm payrolls, renewed tariff threats, and persistent inflation concerns has triggered a risk-off attitude in both equities and digital assets. Bitcoin’s drop below key support at $115,000 weighed heavily on crypto stocks, which remain closely correlated with BTC performance. In the short term, elevated volatility and economic headwinds may continue to pressure prices. Long term, any sustained pickup in jobs growth, easing tariffs, or clear Fed rate‐cut signals would be needed to shift sentiment bullish.