Ethereum slides 6% as risk appetite weakens following US data

Ethereum prices declined sharply on Friday amid widespread sell-offs across most cryptocurrencies, as global risk appetite weakened following disappointing employment data from the United States.

Government data showed the US economy added only 73,000 jobs in July, well below expectations of a 100,000-job increase.

Figures for May and June were also revised down sharply, showing a combined downward adjustment of 258,000 jobs from initial estimates. June’s figure was revised to just 14,000 from 147,000, while May’s was cut to 19,000 from a previously reported 144,000.

The unemployment rate rose to 4.2% in July from 4.1%, in line with market forecasts.

Separately, a monthly survey by the University of Michigan showed the final July reading of US consumer sentiment rose to 61.7, up from 60.7 in June and slightly below the preliminary reading of 61.8. However, it remained well below the July 2024 level of 66.4.

In another sign of weakening economic momentum, the Institute for Supply Management reported that its Manufacturing PMI fell by one point to 48 in July.

Amid the soft data, President Donald Trump questioned the legitimacy of the weak jobs figures, accusing official agencies of manipulating the numbers for political reasons.

As a result of the weak labor report, expectations for a 25-basis-point interest rate cut by the Federal Reserve at its September meeting have increased. This comes after the Fed decided on Wednesday to keep its benchmark rate unchanged in the 4.25%–4.50% range.

Adding further pressure to global markets, President Trump announced earlier in the day a new round of tariff hikes on dozens of countries, intensifying fears of an escalating trade war.

Ethereum

As of 21:04 GMT, Ethereum was down 5.7% on CoinMarketCap, trading at $3,523.8.