Crypto Markets Slump as Jobs Data Disappoints and Tariffs Fuel Uncertainty

Cryptocurrency markets remained volatile for a second consecutive day on Thursday as the U.S. ADP employment report showed hiring slowing, adding to uncertainty after President Donald Trump’s latest tariffs took effect.

At the time of writing, Bitcoin (BTC) is trading at $103,400, down 1.7% over the past 24 hours. Ethereum (ETH) dropped by 2.6% to $2,570. XRP is down 3% to $2.17 while Solana (SOL) dropped by 4% to $149.

The total cryptocurrency market capitalization decreased by 4.3% on the day to $3.36 trillion. Leveraged liquidations totalled approximately $272 million, with ETH accounting for around $70 million, according to CoinGlass. BTC liquidations came in at around $58 million, followed by altcoin liquidations at $38 million.

In the exchange-traded fund (ETF) space, U.S. spot BTC ETFs recorded $87 million worth of inflows. Meanwhile, spot ETH ETFs attracted $57 million in inflows, according to SoSoValue.

Macro Uncertainty

Experts say several factors are fueling today’s market volatility, but the biggest driver seems to be recession fears triggered by the latest jobs data.

The latest U.S. ADP employment report showed private payrolls rose by just 37,000 in May, well below April’s 60,000 gain and the Dow Jones estimate of 110,000. The ADP data also marked the weakest monthly job growth since March 2023.

These findings were released on the same day that President Donald Trump's latest tariffs on metals came into effect – which have also been leading to investor unease.

The ADP findings arrive two days before the nonfarm payroll report from the Bureau of Labor Statistics is slated to come out. That report is expected to show a gain of 125,000, and the unemployment rate steady at 4.2%.

Circle IPO

Earlier today, Circle’s IPO went live on the New York Stock Exchange (NYSE). The company, whose USDC stablecoin currently has a market capitalization of $61.5 billion, debuted at $31 per share and soared nearly 200% to $90. It raised around $1.05 billion.

"Circle’s upsized IPO reflects deepening institutional belief that stablecoins like USDC will play a foundational role in modern finance and is commensurate with USDC's growth into a $64 billion behemoth,” said James Toledano, Chief Operating Officer at Unity Wallet. “It may also be opportunistic given the relaxation of regulations and an incredibly favorable environment in the U.S. under the Trump administration.”

Circle’s USDC is the second-largest stablecoin by market cap, behind Tether’s USDT. The total stablecoin market currently stands at around $250 billion, according to DeFiLlama.

Toledano said that in the coming years, he “fully expects independent stablecoins to move beyond crypto trading into mainstream payments.”

Massive Options Block Trade

In other news, today marked the largest crypto options block trade in history, with a total notional value of $1.19 billion (equivalent to 11,350 BTC) and $7.5 million in premiums, according to data from GreeksLive.

The block had two parts: 3,800 bullish September spreads, which showed a bet on higher prices and volatility over the long term; and a sale of June at-the-money (ATM) calls.

“Simply put, this nearly $1.2 billion options block sees little upside in June, while the third quarter could see a significant block, even up to 50%,” the data platform said in a post on X.