Crypto Markets Drop on U.S. Labor Market Concerns

Cryptocurrency markets traded lower on Thursday, bringing the industry’s total market capitalization closer to the $2 trillion mark.

Bitcoin (BTC) and Ethereum (ETH) slipped 3% to $56,250 and $2,380, respectively. Polkadot (DOT) fell 3.5%, while Solana (SOL) shed 2% on the day.

According to CryptoQuant, an on-chain analytics firm, the number of active addresses on the Bitcoin network has hit new 2024 lows, dipping to levels not seen in three years when the price of BTC was around $45,000.

“This feeling of disinterest could have a negative influence on the price of BTC, coinciding with indicators of low trading volume. Less activity on the network generally means less volatility, which can lead to periods of price stability,” CryptoQuant contributor Gaah wrote on X.

Among the top 100 cryptocurrencies by market cap, Helium (HNT) rose by 10%, while SATS (1000SATS) and Injective (INJ) gained 8% and 7%, respectively. Mantra (OM), Aptos (APT), and Celestia (TIA) were among the biggest losers.

The Crypto Fear and Greed Index stands at 29, indicating fear, but slightly up from 26 on Wednesday. The index ranges from 0, which means "Extreme Fear," to 100, representing "Extreme Greed."

Weakening Labor Market

U.S. economic data released on Thursday pointed to a weakening labor market.

Private payrolls grew by only 99,000 in August, marking the weakest growth since 2021. This figure missed the Dow Jones estimate of 140,000 and fell below July's revised figure of 111,000.

Additionally, the Job Openings and Labor Turnover Survey (JOLTS) report from Wednesday indicated that the number of job openings stood at 7.67 million at the end of July, down from 7.9 million in June and below the market expectation of 8.1 million.

U.S. stocks shrugged off the tepid numbers, with the Nasdaq Composite gaining 0.1%. The S&P 500, however, fell 0.2%, and the Dow Jones Industrial Average dipped 0.5%.