- The U.S. jobs report shows rising unemployment and a slowing economy.
- Bitcoin falls below $82K amid Fed uncertainty and panic selling.
- Traders watch rate cuts and inflation closely, keeping volatility high for crypto and risk assets.
The latest U.S. jobs data is sending mixed signals across financial markets, and the crypto space is feeling the impact. With unemployment rising and traders reassessing their expectations for the Federal Reserve, Bitcoin and altcoins are reacting to the macro landscape.
Unemployment Rises as Job Growth Slows
The delayed September 2025 U.S. jobs report shows unemployment climbing to 4.4%, the highest level since October 2021. The economy added 119,000 jobs, beating expectations but still reflecting a cooling environment.
The Bureau of Labor Statistics noted that nonfarm payrolls have shown “little change since April,” even as hiring continued in healthcare, food services, and social assistance. Transportation, warehousing, and federal government employment fell, underscoring the uneven nature of the recovery.
Despite the labor market’s weakness, the U.S. Department of Labor publicly praised the numbers, calling them proof of “progress to restore the American Dream” under President Trump.
Economist Justin Wolfers offered a more cautious interpretation. He compared the monthly report to a “bathroom scale,” suggesting one reading doesn’t define a trend, but the rise in unemployment hints that the economy may be “consuming too much economic junk food.”
Macro Jitters Hit Bitcoin and Crypto Markets
Crypto markets moved fast after the jobs report. Bitcoin fell below $82,000 as tech stocks dropped. Panic selling in risky assets led to over $2 billion in crypto liquidations, including $962 million in Bitcoin.
In just two hours after the jobs report, $450 million in leveraged positions were wiped out as markets adjusted to a possible delay in the Fed’s policy changes.
Traders are split on what the Fed will do next. Higher unemployment makes a rate cut more likely, but policymakers worry that easing too soon could keep inflation above target.
After the jobs report, futures markets dropped the chance of a January 2026 cut from 55% to 20%. For December, CME data shows a 70% chance of a rate cut, up from yesterday’s 39%.
Notably, the October jobs report was canceled due to the shutdown, and November’s data will come after the December FOMC meeting. This leaves the Fed with less reliable information and markets guessing.
What This Means for Bitcoin and the Crypto Outlook
The market is caught between fear and opportunity. Rising unemployment points to a slowing economy, which could push the Fed to ease rates, a normally positive sign for Bitcoin and other risk assets.
But stronger payrolls and ongoing inflation worries add uncertainty, keeping volatility high. Analysts say Bitcoin traders are cautious but not fully bearish below $90,000, waiting for clearer economic signals.
Billionaire investor Ray Dalio recently warned that markets could be in a “bubble,” though he sees no trigger for a sudden crash. He recommends diversifying into scarce assets like gold, a strategy that can also support Bitcoin.
With rate expectations shifting daily and U.S. economic data sending mixed signals, traders should expect continued volatility as 2025 comes to a close.
Related: Bitcoin Price Prediction: Breakdown Extends Toward $80,000 as Outflows Hit $558M
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
