In a dramatic reversal, cryptocurrency markets tumbled during Friday morning’s U.S. trading hours, marking a stark departure from the initial exuberance sparked by August’s tepid employment figures. As traders digested the news of a mere 22,000 jobs added last month, anticipation soared for a Federal Reserve interest rate cut, potentially by as much as 50 basis points in September. But the optimism quickly soured. As the stock market bell chimed, ether (ETH) led a precipitous decline, plummeting nearly 4% within minutes and now registering a 1.5% dip over the past day, settling at $4,279.
Crypto Markets Reel From Sudden Reversal
The crypto plunge wasn’t limited to ether. Solana (SOL) and XRP (XRP) mirrored the downswing with similar percentage losses. Meanwhile, Bitcoin (BTC), although outperforming slightly, slid by 2.5%, yet managed to maintain a modest gain over the previous day, hovering at $110,500. Across the board, U.S. stocks echoed this downturn, with the Nasdaq and S&P 500 slipping by 0.6% and 0.7%, respectively. In a curious twist, gold — often a safe haven in uncertain times — continued its upward trajectory, albeit modestly, after briefly touching a record high of $3,654.
“The job market’s lethargy over the past four months is sounding alarms,” noted Heather Long, chief economist at Navy Federal, on X. Her commentary underlined the growing consensus that the Federal Reserve must act decisively in September, perhaps even extending rate cuts into October. This sentiment was echoed by Olu Sonola, Head of US Economic Research at Fitch Ratings, who suggested that the Fed’s focus may now shift from its inflation mandate to ensuring labor market stability, despite inflation straying from its 2% target.
Implications for Crypto and Beyond
The crypto market’s abrupt downturn has left traders and analysts scrambling to understand the broader implications. President Trump added his voice to the chorus on Truth Social, criticizing Federal Reserve Chair Jerome Powell for his timing on interest rate adjustments. “Jerome ‘Too Late’ Powell should have lowered rates long ago,” Trump remarked, suggesting that the Fed’s delayed actions have exacerbated market anxieties.
Traders at the Chicago Mercantile Exchange (CME) have recalibrated their expectations, with the probability of a 25 basis point cut dwindling to 86%, while a 14% chance of a 50 basis point reduction has emerged. This shift reflects a growing uncertainty about the Fed’s next moves, as global economic headwinds continue to buffet financial markets. As explored in Bitcoin, Ethereum Settle In, But Signs Point to Volatility Ahead: Analysis, the crypto market’s volatility is expected to persist amidst these macroeconomic challenges.
The reverberations have been felt across crypto-related equities as well, with Coinbase (COIN) sliding 4%, Circle (CRLC) plummeting 7.5%, and MARA Holdings (MARA) declining by 3.2%. Meanwhile, leading ether treasury firms such as Bitmine Immersion (BMNR) and Sharplink Gaming (SBET) have seen their values drop by 5.4% and 6%, respectively. This follows a pattern seen in Spot Bitcoin ETFs surge, Ether funds bleed as investors flee for safety, highlighting the shifting investor sentiment in the crypto space.
Looking Ahead: Uncertainty and Opportunities
As markets grapple with the fallout from the employment report, questions linger about the sustainability of the crypto rally earlier this year. Will the Federal Reserve’s anticipated rate cut be enough to stabilize the teetering economic landscape? And how will these monetary shifts impact the volatile yet promising world of digital currencies?
For now, investors are left to ponder the future with a mix of skepticism and hope, as the interplay between macroeconomic forces and the fast-evolving crypto ecosystem unfolds. The coming weeks promise to be a period of heightened volatility and opportunity, with the potential for significant market shifts as new data and policy decisions emerge. As always, the crypto community remains poised for the next chapter in this ever-evolving narrative.
Source
This article is based on: Ether Leads Crumbling Crypto Prices in Shocking Reversal From Early Rally
Further Reading
Deepen your understanding with these related articles:
- Bitcoin vs. Ethereum: What Makes September 2025 Different for Crypto Market Leaders
- Bitcoin, Ethereum and XRP Hold Steady as ‘Red September’ Kicks Off
- Bitcoin Faces Jobs Test as Tether Considers Gold Mining: Crypto Daybook Americas
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
