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Today was a rough day for crypto, bitcoin, and the broader markets. From Bitcoin dipping below $113,000 to altcoins crashing and the US stock market tumbling, it seemed like everything was going south at once. Even former President Trump expressed his frustration over recent developments. But amidst the chaos, there’s a silver lining that crypto enthusiasts and investors should pay close attention to. Let’s break down what happened, why it matters, and why bitcoin isn’t done yet.
Understanding the Market Meltdown: What Went Wrong?
This week has been a classic correction week. The Federal Open Market Committee (FOMC) meeting didn’t provide the reassurance markets hoped for, and today’s jobs report added fuel to the fire. The US jobs report came in drastically under expectations — with job growth under 100,000, way below estimates. This signals that the US economy isn’t hiring as aggressively as anticipated.
What’s even more alarming is the massive downward revision of job numbers from the past two months. Initial reports showed about 260,000 jobs added, but that was revised down to approximately 37,000. Combine that with today’s dismal report, and it’s clear the US economy has essentially seen zero net job growth over the last three months. There’s been a significant number of job losses offsetting any gains.
This kind of revision is rare and unsettling. The last time we saw such a large correction was in 2020 during the COVID-19 pandemic, when revisions were off by about 800,000 jobs. It raises questions about the accuracy and reliability of these reports—whether it’s due to data collection challenges or political motives shaping the narrative.
“How could someone gathering all the data be so wrong? Or is the jobs report just completely fake, changed to fit whatever narrative they want?”
This jobs report rattled the markets hard. The US stock market tanked, tech stocks took a hit, and crypto followed suit. Panic selling and liquidations swept across the board, dragging Bitcoin below $113,000 and decimating many altcoins.
New Tariffs Add to the Pressure
Adding to the market’s woes, August kicked off with the return of tariffs. President Trump called out Canada, Brazil, and Switzerland for failing to strike trade deals, slapping hefty tariffs on their exports:
- Canada: 35% tariff
- Brazil: 50% tariff
- Switzerland: 39% tariff
Moreover, any goods shipped from countries without a trade deal face tariffs up to 40%. This renewed trade tension further dampened investor sentiment, compounding the effects of the weak jobs data.
The Silver Lining: Why a Rate Cut in September Looks Inevitable
Despite the chaos, there’s an important asterisk to today’s story. The Federal Reserve has two main triggers that could convince it to cut interest rates: either inflation drops or job numbers weaken significantly. With inflation stubbornly high, today’s jobs report and massive downward revisions have pushed the probability of a September rate cut to around 90%.
Even Federal Reserve Chair Jerome Powell, who had remained noncommittal about September, now faces mounting pressure to act. The economy’s lackluster performance and tepid hiring make it increasingly clear that the Fed must do something to stimulate growth.
Some traders are even speculating that the Fed could deliver a 50 basis point cut in September, not just the standard 25 basis points. This would be a significant move to counteract the economic slowdown.
Fed Governor Resignation: More Pressure for Cuts
Another factor supporting the likelihood of a rate cut is the unexpected resignation of Fed Governor Michelle Bowman (speculated name Kolar Cougler in some reports). While no official reason was given, industry insiders speculate that she stepped down under pressure related to the rate cut debate.
Her departure changes the Fed’s voting dynamics. Previously, the rate cut vote was 9-2 against cuts, but with her gone, the balance may shift to 8-3, favoring cuts. This political shift within the Fed strengthens the case for easing monetary policy soon.
Crypto Market Impact: Panic Selling and Liquidations
Bitcoin’s dip below $113,000 was driven by panic selling and liquidation cascades, with over a billion dollars wiped out in long positions today alone. Altcoins like SOUL and others took a particularly hard hit, resetting gains made over the last two weeks of what looked like a promising altcoin season.
However, this purge of leveraged positions is not all bad news. Clearing out excess leverage sets the stage for a stronger rebound. With Wall Street pressure easing and the prospect of a Fed rate cut looming, the markets could be primed for a bounce back soon.
Looking at the liquidation charts and trend lines, if Bitcoin dips a bit further, it might find support around $111,000 before launching a heavy bounce. Alternatively, it could rebound from current levels if Asian markets show buying interest tonight.
Why Bitcoin Is Still the Best Bet
All the monetary policy drama, Fed-White House infighting, and market volatility highlight one thing: the need for something better and more reliable. That’s why Bitcoin remains the go-to asset for many investors. As I’ve said before, stacking sats, holding, and dollar-cost averaging is the right strategy.
Bitcoin continues to prove itself as a hedge against traditional market chaos. While the current correction hurts, it also offers an opportunity to accumulate more Bitcoin and altcoins at discounted prices before the next rally.
Looking Ahead: Stay Strong and Focused
Today was undeniably a bad day for crypto, bitcoin, and the markets in general. But it’s important not to panic. Market cycles include ups and downs, and corrections often clear the path for future growth.
For those who had longs liquidated or are feeling down, remember this is part of the game. If you’re holding and stacking, you’re in a strong position. The recent dip is your chance to load up before the next kickstart.
Let’s keep our eyes on September and the Fed’s next moves. The likelihood of a rate cut, possibly even a 50 basis point cut, combined with a cleaner slate in the market, sets the stage for a potential rebound.
So stay strong, stay focused on the future, and don’t let today’s chaos shake your conviction. Bitcoin and crypto have weathered storms before and will continue to do so.
And on a personal note, I’m still here in paradise, enjoying the beautiful scenery behind me, reminding myself—and you—that better days are ahead.
Summary: Key Takeaways on Today’s Crypto and Bitcoin Market
- US jobs report was much weaker than expected, with massive downward revisions over recent months.
- New tariffs from the US on Canada, Brazil, and Switzerland added pressure to markets.
- The probability of a Federal Reserve rate cut in September has surged to around 90%, with a chance of a 50 basis point cut.
- Fed Governor resignation may shift voting dynamics in favor of rate cuts.
- Bitcoin dipped below $113,000 amid panic selling and liquidations, but this could set up a strong bounce.
- Bitcoin remains the best long-term bet amid market turmoil, with stacking sats and DCA as smart strategies.
- Market corrections are part of the game; stay calm and use dips as buying opportunities.
Remember, crypto and bitcoin markets are volatile, but understanding the bigger picture helps you make better decisions. Keep stacking, keep holding, and let’s ride this wave together.
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