By Key Points
- July jobs growth far below expectations, signaling economic weakness
- Over 258,000 prior job gains were revised down sharply
- Trump pushes Fed for rate cuts, fueling crypto speculation
- Weaker dollar and low rates could drive long-term crypto demand
The latest US Jobs Report delivered a shock to financial markets, and the crypto world is taking note.
According to the Bureau of Labor Statistics (BLS), nonfarm payrolls in July increased by only 73,000, well below economists’ expectations. Private sector hiring totaled 83,000, while government jobs declined. These are some of the weakest job gains recorded since the pandemic-era recovery.
Even more concerning are the sharp downward revisions to past data:
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May jobs were cut from 144,000 to just 19,000
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June jobs were slashed from 147,000 to only 14,000
That’s a combined 258,000 jobs wiped off the books — a major red flag.
Adding to the gloom, job cuts hit 292,294 in July, the highest figure since 2020 and the second highest since the 2008 crisis.
Beneath the surface, things could get worse. Over 160,000 federal workers impacted by recent budget cuts haven’t officially appeared in the statistics yet. They’re currently on administrative leave and expected to show up in later reports, likely after September 30.
Investors are increasingly seeing this as a turning point.
BREAKING: US job cut announcements jumped +140% YoY in July, to 62,075, well above the 4-year average.
This is more than double the average July job cut number of 23,584 between 2021 and 2024.
Year-to-date, US-based employers have announced 806,383 job cuts, the highest total… pic.twitter.com/M4x0Evqr6P
— The Kobeissi Letter (@KobeissiLetter) August 1, 2025
How a Weak Jobs Report Could Boost Crypto
The crypto market loves uncertainty — especially when it pressures central banks into cutting rates. That’s exactly what seems to be happening now.
Just hours after the jobs report, President Trump renewed his attack on the Federal Reserve, blaming Fed Chair Jerome Powell and demanding interest rate cuts. Trump argues that high rates are hurting workers and businesses, and this latest data gives him more ammunition.
Too Little, Too Late. Jerome “Too Late” Powell is a disaster. DROP THE RATE! The good news is that Tariffs are bringing Billions of Dollars into the USA!
— Trump Truth Social Posts On X (@TrumpTruthOnX) August 1, 2025
Markets appear to agree. Prediction markets like Polymarket have seen the odds of a September rate cut surge significantly, as traders bet on a Fed pivot.
Odds of a September Rate Cut. Source: Polymarket – Techtoken
So, why does this matter for crypto?
Rate Cuts Fuel Risk-On Assets
Lower interest rates reduce the opportunity cost of holding speculative assets like Bitcoin and Ethereum. When the Fed eases monetary policy, investors often move into crypto searching for yield and growth. It also makes holding cash less attractive, pushing capital into assets perceived as inflation hedges.
We’ve already seen this play out before. When Bitcoin peaked alongside M2 money supply growth, macro conditions created a perfect environment for digital assets to rally. (Read more)
Weaker Dollar Could Drive Global Crypto Demand
A weakening job market typically hurts the US dollar. If the greenback falls in value, crypto becomes more attractive to both retail and institutional investors. That’s because:
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Retail users abroad can buy more Bitcoin for the same local currency
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Institutions may use crypto as a hedge against inflation and currency devaluation
Dollar-denominated stablecoins, such as USDM, are gaining traction as reliable tools for global crypto users navigating inflation. (Explore USDM Stablecoin)
Even so, some traders are still cautious after recent losses. Platforms like AguilaTrades saw significant Bitcoin losses among retail accounts due to overleveraged positions following macro shocks. (See the full report)
Short-Term vs. Long-Term Crypto Impact
Right now, the immediate impact on crypto prices has been modest. Bitcoin and Ethereum both dipped slightly after the report, reflecting short-term uncertainty rather than bullish momentum.
Traders are still trying to gauge the Fed’s next move. Many are waiting for official signals from Powell before going long on crypto assets.
Still, the broader outlook is forming: If economic weakness persists, crypto could benefit heavily in the months ahead.
We’re also seeing signs of growing political debate around crypto’s role. Ripple’s CTO recently fired back in a heated conversation about XRP’s real-world utility, highlighting how mainstream crypto use cases are entering the macro policy conversation. (Join the XRP utility debate)
The Bottom Line: Bad Jobs Data May Be Bullish for Bitcoin
The US Jobs Report may be a warning sign for the economy — but it could end up being a positive for the crypto market.
Lower interest rates and a softer dollar often spark renewed interest in digital assets. While markets haven’t reacted strongly yet, sentiment is shifting.
If more weak economic data rolls in, and if the Fed responds with easing, crypto could be one of the biggest winners in this changing macro landscape.
Keep an eye on how regulators treat the space too. The evolving Crypto ETF and Altcoin Rule could influence which assets benefit most from the macro shift. (Full breakdown here)
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