US Jobs Report Triggers Sell-Off in Bitcoin and Gold
Bitcoin and gold prices dropped sharply on Friday after the U.S. Bureau of Labor Statistics (BLS) reported August nonfarm payrolls of 162,000, nearly triple the 56,000 jobs economists expected. The stronger-than-anticipated labor data revived market bets that the Federal Reserve may raise interest rates in September, according to reporting from BeInCrypto.
August Employment Data Surpasses Forecasts
The U.S. economy added 162,000 jobs in August, significantly exceeding the consensus estimate of 56,000. According to the Bureau of Labor Statistics, the growth was driven largely by the leisure and hospitality sector, which added 62,000 positions, including 55,000 in food services and drinking places. Local government education also saw a rebound with 42,000 new jobs, reversing much of July’s decline.
Net revisions to previous months further challenged the narrative of a cooling economy. The BLS revised the July figure from a loss of 23,000 jobs to a gain of 21,000, while June’s figure rose from 20,000 to 31,000. These adjustments increased the three-month average to 71,000 jobs, up from the previous average of 38,000. Meanwhile, the unemployment rate held steady at 4.1%.
Market Reaction: Bitcoin and Gold Volatility
Asset prices reacted immediately to the payroll data. Bitcoin, which was trading at $81,340 prior to the release, fell to $79,661 within a single five-minute candle—a loss of 1.80%—before stabilizing around $79,860. Gold followed a similar trajectory, sliding from $4,473 to $4,376 per ounce, a 1.75% decline in the same window.
High leverage amplified these price swings. Data from CoinGlass showed $202 million in long positions liquidated within one hour of the announcement, contributing to a 24-hour total of $768.54 million in crypto liquidations.
Federal Reserve Rate Expectations
The labor market’s resilience provides a foundation for officials favoring higher rates. BeInCrypto noted that while the probability of a Fed rate hike had dropped to 50% earlier in the week—following signals from Governor Christopher Waller supporting a pause—the new data shifts the logic back toward a tighter policy. Strong wage growth, with average hourly earnings rising 0.3% to $37.75 (a 3.1% annual rate), exceeds the 3% forecast.
Investors are now looking toward the Consumer Price Index (CPI) report due September 11. This inflation data arrives five days before the Federal Reserve’s next policy decision and could potentially alter the market’s current trajectory.
Labor Data Comparison: Forecast vs. Reality
| Metric | Economist Forecast | Actual (BLS) |
|---|---|---|
| August Nonfarm Payrolls | ~56,000 | 162,000 |
| Annual Wage Growth | 3.0% | 3.1% |
| July Jobs (Revised) | -23,000 (Initial) | +21,000 |
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