Stocks, Cryptos Falter on Jobs Data, Binance Hack Fallout

Bitcoin down 2%, ether falling 1.5%, the S&P 500 and tech-heavy Nasdaq losing 2% and 3% respectively

article-image

Blockworks Exclusive Art by Axel Rangel

share
  • Crypto’s rally earlier in the week proved to be short lived
  • Jobs data and fears over the latest crypto hack had investors weary

Even after hints earlier in the week that a turnaround was coming, cryptocurrencies and equities are lined up to end another week in the red following jobs data that suggests rising interest rates will likely continue and ongoing turmoil in the digital asset space. 

It was a sea of red across the board midway through the trading session Friday. Bitcoin and ether lost 2% and 1.5%, respectively. The S&P 500 and tech-heavy Nasdaq posted 2% and 3% losses, respectively. 

Macroeconomic data and further trouble in the crypto world contributed to the decline, analysts said. Cryptos were already suffering from widespread volatility in equity markets, fueled by increasing inflation, calls for central banks to pivot and fret over how high interest rates might go.

News of a hack on Binance’s BNB Chain, coupled with positive news on the labor front and a strong US dollar, put an end to crypto’s slight rally earlier in the week. 

BNB Chain noted on Twitter that it had paused its network, sending the price of Binance Coin (BNB) lower. The cryptoasset traded for as little as $279 by 7:50 pm ET. By Friday afternoon, the price had recovered to around $282, according to data compiled by Blockworks.

“BNB dropped less than 5%,” Changpeng Zhao, often known as CZ, said Friday morning during an appearance on CNBC’s Squawk Box. CZ added that his team has now minimized the damage to “less than $100 million.” 

On the macro side, Friday’s jobs data showed that unemployment fell to 3.5% in September, down from 3.7% in August. It’s a sign traders took to mean a Federal Reserve pivot is a long way off, Craig Erlam, senior market analyst at Oanda, said.

“Even earlier in the week when equity markets were rallying strongly, there was always a sense that the jobs report could spoil the party,” Erlam said. “And not because it could point to cracks appearing in the labor market, quite the opposite in fact.”

The market seems to be thinking that poor economic data, such as rising unemployment or poor manufacturing PMI, as seen on Tuesday, will leave the Fed with no choice but to back off its rate raising policy. 

“The labor market until now has been very resilient and while cracks appearing will get the attention of the central bank, it will take much more than that to force it to slow down,” Erlam said. “What’s more, without inflation indicators consistently pointing to lower price growth, policymakers will be hesitant to ease up sooner.” 

The central bank’s next policy meeting is scheduled for November.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

The march toward an interoperable and onchain-by-default internet depends on reliable messaging and value transfer across heterogeneous domains. Crosschain protocols now process >$1.3T in combined annual transfer volume and secure tens of millions of user interactions, yet no single design dominates.

article-image

The goal, per Santiago Santos, is to make crypto a relatable piece of tech for people who may not even understand it

article-image

Stripe stablecoin unit aims to operate under a federal charter enabling regulated stablecoin issuance and custody services

by Blockworks /
article-image

Will TradFi make crypto better or create more problems than it solves?

article-image

Subtle decisions by risk curators saved Aave from significant turmoil

article-image

The new Rootstock Institutional unit aims to connect professional investors to Bitcoin-native yield and liquidity strategies anchored in BTC’s security layer

by Blockworks /
article-image

DOJ files record civil forfeiture against more than 127,000 BTC linked to scam activity

by Blockworks /