Bitcoin Price Is Dropping After Latest Job Report: Here's Why

Source: ETHNews Original Title: Bitcoin Price Is Dropping After Latest Job Report: Here’s Why Original Link: https://www.ethnews.com/bitcoin-price-is-dropping-after-latest-job-report-heres-why/ Bitcoin has fallen sharply toward the $87,800–$88,300 region, extending a volatile week that has pushed the market into deeper uncertainty. The latest intraday chart shows a clear breakdown, with price collapsing from the mid-$92,000 area and sliding quickly once sellers regained control. At press time, Bitcoin trades around $87,823, marking a 12.9% weekly decline and showing renewed downward pressure as investors reassess macroeconomic risks.

The drop is not coming from within the crypto market itself. It is almost entirely the result of mounting macro tension, particularly new labor data that has dramatically reshaped expectations ahead of the Federal Reserve’s December meeting.

Mixed Labor Data Sparks Fear Across Risk Markets

The September jobs report, finally released after delays caused by the government shutdown, immediately unsettled traders. Payroll growth came in far stronger than expected, with 119,000 new jobs versus the forecasted 51,000, but the headline strength masks deeper problems. Unemployment rose to 4.44% unrounded, putting the figure dangerously close to the 4.5% caution zone that several Fed officials privately reference when assessing recession risk.

This combination of stronger payrolls and rising unemployment creates a contradictory picture. As Wilmington Trust’s Wilmer Stith noted, the unemployment figure is now “uncomfortably close” to levels that historically trigger policy concern. And because the October jobs report does not exist due to the shutdown, and the November data arrives after the December Fed meeting, policymakers are entering the decision window with unusually limited visibility. For markets, that lack of clarity is enough to trigger defensive positioning.

Rate-Cut Expectations Collapse, Sending Crypto Lower

Only a month ago, traders were almost certain, 94% probability, that the Fed would cut rates in December. That expectation has collapsed to around 37%, reflecting a dramatic loss of confidence following the messy labor data. Higher rates for longer mean tighter liquidity, more expensive borrowing, and reduced appetite for speculative assets. Crypto, which is the most sensitive to changes in liquidity conditions, is typically the first to react.

This shift is visible directly on the charts. Every time Bitcoin attempted to reclaim the $92,000–$93,000 level, sellers overwhelmed buyers. When macro headlines reached trading desks, the price began a steep slide, ultimately cascading toward the $88,000 region on accelerating volume. The downside momentum suggests that part of today’s move was fueled by liquidations, traders instantly closing leveraged positions as funding conditions tightened.

Investors Lose Confidence as Fed Visibility Deteriorates

Beyond the data itself, the tone from analysts has worsened. Krishna Guha of Evercore ISI called the report “stale” and “unhelpful,” arguing that the erratic and constantly revised labor numbers give the Fed almost no meaningful guidance. Stith described the data as “noisy,” noting the unpredictable pattern of negative job creation in August followed by a rebound in September. Without a clear trend, the central bank risks making a policy mistake, and that uncertainty often leads markets to assume the Fed will err on the side of caution by holding rates higher for longer.

With the committee internally divided and the incoming data unreliable, risk markets have quickly shifted into protection mode. Bitcoin is absorbing most of that stress, which explains the increasingly sharp sell-offs visible in recent market movements.

Macro Shockwaves Hit Crypto First

The combined effect of uncertain labor conditions, fading rate-cut hopes, and a central bank operating with limited visibility has created a temporarily hostile environment for risk assets. Equities are choppy, bond yields are unstable, and crypto, due to its volatility and liquidity structure, is experiencing the fastest repricing. Bitcoin’s sharp decline from over $92,000 to $87,800 fits the classic pattern of macro-driven sell-offs, where traders exit risk exposure until policy clarity improves.

Conclusion

Bitcoin’s decline today is not a crypto-specific issue. It is the direct result of worsening macro conditions, unreliable economic data, collapsing rate-cut expectations, and the market’s fear that the Federal Reserve may be forced to maintain tight policy longer than anticipated. With so few reliable data points available before the next Fed meeting, traders should expect higher volatility and more abrupt price swings.