Bitcoin and major altcoins began to recover over the weekend after a sharp decline last week linked to disappointing US jobs data.

As of 10:40 p.m. on August 3, 2025, bitcoin rose 1.22% in the past 24 hours to US$114,738, according to The Block.

The cryptocurrency had fallen from around US$119,000 on July 31 to a low of US$111,800 on August 2, 2025.

Ether increased 3.12% to US$ 3,549, XRP gained 6.32% to US$3, and Solana climbed 1.66% to US$163.69.

Analysts attributed the earlier decline to weaker-than-expected US nonfarm payroll numbers for July, and a broader drop in the US stock market, which led to profit-taking in cryptocurrency markets.

Some market participants said investors quickly bought the dip, helping prices rebound.

Traders remain cautious, with attention now turning to the US consumer price index report due August 12, which may influence the Federal Reserve’s next interest rate decision.

🔗 Source: The Block

🧠 Food for thought

1️⃣ Crypto markets now mirror traditional finance reactions to key economic data

The disappointing July jobs report that triggered crypto’s decline reflects Bitcoin’s growing correlation with traditional markets, contradicting its original promise as an uncorrelated asset.

Research analyzing data from 2018-2021 found that a 1% increase in S&P 500 returns typically leads to approximately a 0.54% increase in Bitcoin returns, demonstrating significant coupling between the markets1.

This correlation explains why crypto followed broader market sentiment after the weak employment data, with the S&P 500 historically showing an average price movement of 0.81% on Non-Farm Payroll report days2.

Bitcoin’s reaction to macroeconomic data signals its evolution from a speculative digital asset to one increasingly integrated with institutional investment flows and traditional market dynamics.

2️⃣ Regulatory clarity creates immediate market opportunities despite enforcement uncertainty

The SEC’s “Project Crypto” announcement represents a shift toward constructive regulation after years of enforcement-heavy approaches that created significant market volatility.