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The crypto market plunged alongside stocks after the highly anticipated jobs report showed the labor market is still problematic for assets and could push the Federal Reserve to hike rates aggressively.

The price of bitcoin shed 3.3% to $19,380.74, according to Coin Metrics. Ether dipped 2.7% to $1,322.40.

On Friday, the Labor Department reported that the U.S. economy added 263,000 jobs in September, compared with the Dow Jones estimate of 275,000. The unemployment rate plunged to 3.5% from 3.7% in the previous month.

“The jobs report points to no change of tune on the horizon for the Fed, so we continue to expect firm interest rates which also adds pressure to crypto markets,” said Yung-Yu Ma, chief investment strategist at BMO Wealth Management.  

Cryptocurrencies’ correlation with stocks has weakened in recent weeks but remains high.

“Crypto looks to be at an important technical juncture here where it looks like it’s trying to carve out a bottom, but feeling heavy,” he added. “I still think it, more likely than not, breaks to the downside given rising interest rates and risk-off sentiment, but so far it’s a surprising effort to hold the line.”

Although the new data shows strength in the U.S. economy, that could motivate the Fed more likely to continue with its aggressive rate hiking plan, which further weighs down on stocks on crypto.

“Crypto has been the hardest hit by rate hike fears this year,” said Callie Cox, U.S. investment analyst at eToro. “It makes sense – many crypto projects don’t have cashflows, so people invest in them for what they could be, not necessarily what value they’re providing right now. When rates rise, the future value of a dollar falls.”

Cox also pointed out the resilience of crypto assets in the second half of the year, highlighting that while stocks have plunged to new lows with the surge in bond yields, bitcoin and ether haven’t behaved the same. Bitcoin has been trading in a tight range of between $18,000 and $25,000 since falling to its lows of the year in June.

“To me, that’s progress in this bear market,” Cox said. “Crypto prices could be telling us the rate anxiety could be at a turning point. Crypto’s strength is also a good indicator of frothiness in the market. It seems like the brutal growth selloff has finally washed out all the weak hands.”

“Bitcoin is also far below its highs too,” she added. “But stability is a step in the right direction.”