The crypto market went through a sharp sell-off today, and the trigger wasn’t a hack or a delayed ETF. It was a political move straight from the White House. President Donald Trump, the 47th U.S. president since January 2025, fired the head of the Bureau of Labor Statistics (BLS) right after the release of a weak July jobs report.
This sudden action rattled traditional markets and spilled over into crypto. Bitcoin and altcoins sold off quickly, reflecting the uncertainty now gripping the broader financial world.
What you'll learn 👉
A Brutal Jobs Report
The July jobs report came in far worse than expected:
- Only 73,000 jobs added versus over 100,000 expected
- May and June revised down by 258,000 jobs
This was the kind of report that usually helps risk markets like crypto because it signals the Federal Reserve might cut interest rates. Markets instantly reacted:
- Rate cut odds for September jumped from 40% to 80%+
- Some analysts started calling for a 50-basis-point cut instead of 25
- The U.S. dollar plunged over 1%
Normally, this would be a perfect setup for crypto to rally. Weak economic data plus higher odds of rate cuts is exactly the environment where Bitcoin and altcoins thrive.
🚨 Why market's DUMPED today:
— Real World Asset Watchlist (@RWAwatchlist_) August 1, 2025
Trump just FIRED the person who gave him EXACTLY what he needed to pressure Powell into rate cuts.
The level of self-sabotage here is actually insane.
Let me explain 👇🧵 pic.twitter.com/qyFJJIeXtA
Trump Fired the Messenger
But instead of embracing the data, Trump went on the offensive. He accused the BLS of producing “fake jobs numbers” to hurt Republicans and then fired the BLS Commissioner.
As Real World Asset Watchlist, an X account tracking macro and crypto trends, explained in their viral thread:
“Brother… this data is literally YOUR best argument for rate cuts. The cognitive dissonance is off the charts.”
This move turned a bullish scenario into chaos. Markets now have to question whether future jobs reports are reliable, and whether political interference could become the new normal for economic data.
Why Crypto Reacted So Badly
Traders know that uncertainty kills confidence. Here’s why the crypto market tanked:
- Trust in U.S. data is shaken — Investors can’t price risk if the numbers might be politicized.
- Fed policy is less clear — Powell is being pressured to cut rates, but political drama complicates every decision.
- Volatility spikes — Traditional markets dumped first, and crypto followed with heavy selling.
Even though rate cuts are now more likely, the uncertainty around data integrity and central bank independence triggered a “sell first, ask questions later” reaction.
Read also: $Billions Worth of Tokens To Be Unlocked in August – SUI, ENA, and Others
Powell in the Hot Seat
Federal Reserve Chair Jerome Powell now faces an impossible balancing act:
- Weak economic data screams for rate cuts.
- The president is attacking both the data and Powell personally.
- Markets expect aggressive easing, but confidence in U.S. statistics is fading.
As Real World Asset Watchlist summed up:
“We’ve officially entered the Twilight Zone of economic policy.”
The crypto market didn’t just crash because of bad data. It crashed because the market suddenly saw how fragile the system is when politics and economic policy collide. Until clarity returns, expect volatile, choppy trading in Bitcoin and altcoins
Read also: Here’s Why a BlackRock XRP ETF Filing Could Be Imminent After Ripple’s Latest Move
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