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US Non-farm Payrolls (NFP) data came in below expectations, Crypto Assets fluctuated, institutions remain optimistic about long-term prospects.
Crypto Assets market turbulence, US employment data falls short of expectations
The non-farm payroll data for July released by the U.S. Department of Labor fell short of expectations, with only 73,000 jobs added, far below the market expectation of 110,000. The unemployment rate rose slightly to 4.2%. The slowdown in the job market may have opened the door for the Federal Reserve to consider a rate cut at the September meeting.
As a result, the three major U.S. stock indices collectively fell, with the Crypto Assets sector leading the declines. The price of Bitcoin fell below $29,000, and Ethereum dropped below $1,800. Some analysts believe that weak employment data may lead to a shift in Federal Reserve policy, which would be beneficial for risk assets.
However, well-known Crypto Assets trader Arthur Hayes remains optimistic about the market outlook. He expects Bitcoin to test $100,000 and Ethereum to test $3,000. Hayes believes that due to major economies struggling to quickly create enough credit to boost nominal GDP, the Crypto Assets market is likely to continue rising.
At the same time, institutional investors are still actively positioning themselves. Data shows that ARK Invest increased its holdings in a certain Crypto Assets trading platform stock by about $35.76 million yesterday. SharpLink Gaming deposited 108 million USDC in the past 7 hours and purchased 14,933 coins of ETH.
In terms of regulation, the UK's Financial Conduct Authority announced that it will open retail channels for Crypto Assets ETNs on October 8, 2025. This means that retail investors will be able to trade Crypto Assets ETN products on approved UK investment exchanges.
In addition, OpenAI has completed a funding round of $8.3 billion, bringing its valuation to $300 billion. The company plans to secure $40 billion in funding by 2025, which shows that the investment boom in the field of artificial intelligence is still ongoing.
Overall, despite the increased short-term market volatility, institutional investors and venture capital remain optimistic about Crypto Assets and related technologies. The gradual clarification of the regulatory environment is also expected to lay the foundation for the long-term development of the industry.