Market Reversal Sees Ether Drive Crypto Losses Despite Early Upswing

Crypto Retreats After Brief Rally on Weak U.S. Jobs Data

Friday’s soft U.S. employment report initially boosted crypto markets, but gains proved short-lived as selling pressure quickly reversed momentum across digital assets, stocks, and gold.

The Bureau of Labor Statistics reported that the U.S. added only 22,000 jobs in August, far below expectations. The report reinforced market bets that the Federal Reserve is likely to cut interest rates later this month, potentially by 25–50 basis points.

Crypto assets spiked briefly on the news, with bitcoin, ether, and other major tokens rallying alongside equities and gold. However, the momentum reversed after Wall Street’s opening bell. Ether (ETH) led losses, falling nearly 4% in minutes and ending the day down 1.5% at $4,279. Solana (SOL) and XRP also declined, hitting $202.76 and $2.81, respectively. Bitcoin (BTC) dropped about 2.5%, holding near $110,500.

Equities mirrored crypto’s reversal, with the Nasdaq down 0.6% and the S&P 500 down 0.7%. Gold, meanwhile, retained safe-haven demand, rising 0.9% after briefly hitting a record $3,654 per ounce following the jobs release.

Economists emphasized that the data heightens pressure on the Fed. Heather Long, chief economist at Navy Federal, wrote, “There’s barely been any job growth in the past four months. The Federal Reserve has to cut in September, and maybe October now.” CME Fed futures now show 86% odds of a 25-basis-point cut and 14% for a 50-basis-point move.

Crypto-focused equities extended their losses. Coinbase (COIN) fell 4%, Circle (CRLC) 7.5%, MicroStrategy (MSTR) 1.5%, and Marathon Holdings (MARA) 3.2%. Ether treasury operators Bitmine Immersion (BMNR) and Sharplink Gaming (SBET) were down 5.4% and 6%, respectively.

Olu Sonola, Head of U.S. Economic Research at Fitch Ratings, said, “The warning bell that rang in the labor market a month ago just got louder. A weaker-than-expected jobs report all but seals a 25-basis-point rate cut later this month. Near term, the Fed is likely to prioritize labor market stability over its inflation mandate, even as inflation drifts further from the 2% target.”