The release of the August U.S. jobs report triggered an immediate and synchronized drop in the price of bitcoin (BTC) and gold. The key metric—the number of new nonfarm payrolls—came in nearly three times higher than the consensus analyst forecast, dramatically shifting the balance of power ahead of the Federal Reserve's September meeting.
According to my analysis of the data, the U.S. economy added 162,000 jobs in August, while market expectations did not exceed 56,000. The Bureau of Labor Statistics also significantly revised previous months upward: the July figure changed from a decline of 23,000 to growth of 21,000, and the June figure was increased from 20,000 to 31,000. The cumulative revision over two months added an additional 55,000 jobs to the statistics, completely offsetting earlier signals of a cooling labor market.
The unemployment rate remained at 4.1%, while average hourly earnings rose 0.3% on a monthly basis, reaching $37.75. The annual wage growth rate accelerated to 3.1%, exceeding the forecast of 3.0%.
Instant market reaction: bitcoin lost $80,000 in a minute
The reaction was immediate. Before the data release, bitcoin was trading around $81,340, but within a single five-minute candle, the price plunged to $79,661, showing a decline of 1.80%. The latest trades were passing near the $79,860 level. Gold, which many investors mistakenly consider a "safe haven" in such moments, also came under selling pressure: the metal's price fell from $4,473 to $4,376 per ounce, corresponding to a decline of 1.75%.
The wave of volatility triggered a cascade of liquidations in the derivatives market. Based on my calculations using CoinGlass data, long positions worth $202 million were liquidated within an hour, and the total daily liquidation volume reached $768.54 million.
Fed policy: the hawks return
This report dramatically changes the picture for monetary policy. As recently as late August, the probability of a Fed rate hike was estimated at around 66%. However, after recent hints from Governor Christopher Waller about a possible hold on rates, the market began pricing in a softer scenario, which supported gains in both bitcoin and gold throughout the week.
Now the situation has turned 180 degrees. A strong labor market and upward revisions to the statistics give Fed Chair Kevin Warsh compelling arguments for tightening policy. The inflation data due out on September 11—just five days before the Fed meeting—will be the decisive factor. If inflation comes in below expectations, the market may reassess its Friday estimates, but for now, pressure on risk assets remains.
My comment: Such a synchronized sell-off in bitcoin and gold confirms that under tightening monetary policy, both assets behave like high-risk instruments rather than defensive ones. Investors should prepare for heightened volatility until the inflation data is released—that will determine whether the correction continues or we see a recovery.