Bitcoin and Ethereum Tumble as US Payrolls Data Shakes Crypto Markets

Crypto markets hit turbulence Friday as Bitcoin and Ethereum slid following stronger-than-expected US payroll numbers. The report sparked immediate sell-offs across major digital assets—traders scrambling to adjust positions as traditional finance indicators flexed their influence over crypto valuations.

When Old School Meets New

Payroll data doesn't just move bonds and stocks anymore—it's now punching digital currency in the gut. Bitcoin dropped sharply within minutes of the release, with Ethereum following right behind. No surprise here—when the Fed gets hawkish whispers, crypto often bleeds first.

Same volatility, different day. Wall Street still calls the shots—even in a market that's supposed to be decentralized. Guess some things never change.

The market also saw several top cryptos decouple from the BTC price momentum. Solana and Dogecoin remained marginally up. Ethena Price jumped by 8% over the last 24 hours to trade around $0.82. It is running up by 21% in the past 7 days. Hyperliquida price spiked 6% in the same time, maintaining its bullish rally.

Fed rate cut bets surge

The adjustment shows the labor market was significantly weaker than previously suggested by the government’s monthly nonfarm payrolls reports. According to the Kobeissi Letter, the sharpest losses were concentrated in consumer-facing sectors. This includes 176,000 jobs down in Leisure and Hospitality, and 226,000 jobs in Trade, Transportation, and Utilities. Private hiring alone was overstated by 880,000 jobs. This is a scale of weakness not seen outside the Great Depression and the 2020 pandemic shock.

Last month, May and June payrolls were cut by 258,000, with another 27,000 subtracted this week. This marks the largest two-month net revision outside of 2020. Excluding healthcare, the U.S. economy has lost more than 142,000 jobs over the past four months.

This now marks the largest revision in history, even above 2009 levels.

In 2009, the US revised -902,000 jobs out of 12 months of already reported data.

We are now seeing revisions that are larger than the largest financial crisis outside of the US Great Depression. pic.twitter.com/rLPYTtCl7H

— The Kobeissi Letter (@KobeissiLetter) September 9, 2025

The report highlights that a 25 basis point cut is expected by the Federal Reserve at its meeting next week. If it happens, then this WOULD mark the first Fed rate cut in over 30 years with PCE inflation at or above 2.9%.

Join Bybit now and claim a $50 bonus in minutes