Cryptocurrencies opened Tuesday with solid gains. Bitcoin pushed past $113,000, reaching a weekly high. Ethereum approached $4,400, and XRP crossed the $3 mark for the first time in two weeks. Several other major tokens also traded in the green during the early hours.
However, the momentum reversed sharply by midday. Bitcoin dropped below $111,000, Ethereum fell under $4,300, and most large-cap cryptocurrencies turned negative on the day, erasing their earlier gains.
Jobs Report Sparks Market Reaction
The sudden shift appears tied to newly revised U.S. labor data. According to a government report released Tuesday, the U.S. economy had 911,000 fewer jobs than previously reported as of March 2025. The downward revision – the largest in over 20 years – was significantly worse than economists expected.
While not directly related to crypto, the weaker-than-expected labor figures could affect the Federal Reserve’s upcoming policy decisions, including the interest rate meeting scheduled for September 17.
Uncertainty Over Rate Cuts
Markets had been pricing in an interest rate cut at the next Fed meeting. Lower rates are generally seen as favorable for cryptocurrencies, which often benefit from increased risk appetite in looser monetary environments.
The newly released jobs data complicates those expectations. A weaker labor market might reduce the urgency for aggressive rate cuts, introducing more uncertainty into the outlook for September.
Read also: How to recognize a crypto presale scam? Full guide
What’s Next?
Attention now turns to upcoming U.S. inflation data, including the Producer Price Index (PPI) and Consumer Price Index (CPI), both due later this week. These reports are likely to influence the Fed’s decision and could add further direction to the crypto market in the days ahead.
