Wizard

Industrial

Russell

Reserve

A mixed December 2025 jobs report has compelled crypto traders to rethink how soon the Federal Reserve might cut rates.
While the data did little to signal economic stress, it reduced urgency for near-term easing, setting off a rotation that favored equities over more rate-sensitive assets.
<a href="https://www.thestreet.com/crypto/policy/treasury-secretary-millions-americans-largest-tax-refunds" rel="noopener noreferrer nofollow">Related: Treasury Secretary says millions of Americans may see 'largest tax refunds of their lives'</a>
<h2 id="jobs-data-resets-the-fed-outlook">Jobs data resets the Fed outlook</h2>
The U.S. <a href="https://www.bls.gov/news.release/pdf/empsit.pdf" rel="noopener noreferrer nofollow">economy added</a> 50,000 jobs last month against the estimated figure of 60,000, according to the Bureau of Labor Statistics.
At the same time, the unemployment rate fell to 4.4% from a revised 4.5% in November, easing fears of labor market deterioration.
The combination of jobs data sent a clear signal to policymakers. A softer hiring pace suggested slowing momentum, but the lower jobless rate gave the Federal Reserve room to keep rates steady as it continues to focus on inflation.
<blockquote class="twitter-tweet">
 There’s now a 75% chance we see NO rate cut in January 2026. <a href="https://t.co/trl7ICqY7C" rel="noopener noreferrer nofollow">pic.twitter.com/trl7ICqY7C</a>— Crypto Rover (@cryptorover) <a href="https://twitter.com/cryptorover/status/2000833774666572091?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">December 16, 2025</a>
</blockquote>
Atlanta Fed President Raphael <a href="https://www.reuters.com/business/feds-bostic-says-high-inflation-still-central-banks-main-challenge-radio-2026-01-09" rel="noopener noreferrer nofollow">Bostic said</a> after the report that “inflation is still too high,” underscoring why officials remain cautious about cutting rates too quickly.&nbsp;
Futures markets reflected that shift, with<a href="https://polymarket.com/event/fed-decision-in-january" rel="noopener noreferrer nofollow"> traders pricing</a> only a small chance of a January rate cut and pushing expectations for the next move toward mid-2026.
<h2 id="nasdaq-hits-new-record-high">Nasdaq hits new record high</h2>
U.S. equities edged higher following the report as investors adjusted to the idea of higher-for-longer rates without an immediate growth scare.&nbsp;
<figure>
 <img src="https://www.thestreet.com/.image/c_fit%2Ch_800%2Cw_1200/MjIwNDY3NTg0MzIxOTg3NjU0/screenshot-2026-01-10-014109.png" height="555" width="1200">
 <figcaption>
 Polymarket data at the time of writing
 </figcaption>
</figure>
U.S. equities extended gains following the December 2025 jobs report, with the <a href="https://www.cnbc.com/quotes/.SPX/" rel="noopener noreferrer nofollow">S&amp;P 500 up</a> about 0.8% on Jan. 9 and hitting a fresh all-time intraday high of 6,975.
The Nasdaq Composite rose roughly 0.81% to 23,671.35, while the Dow Jones Industrial Average (DJIA) rose 0.5% to 49,504.07.
Smaller-cap stocks continued to outperform. The <a href="https://www.cnbc.com/quotes/.RUT/" rel="noopener noreferrer nofollow">Russell 2000 climbed</a>&nbsp;0.8% on the day to&nbsp;2,625.33.
Bond markets also <a href="https://www.reuters.com/business/finance/fed-seen-longer-rate-cut-pause-after-jobs-data-2026-01-09" rel="noopener noreferrer nofollow">reflected </a>a repricing of rate expectations. Short-term Treasury yields moved higher as traders scaled back near-term rate-cut odds, reinforcing the view that financial conditions are likely to remain tight into early 2026 rather than easing quickly.
One former Wall Street bond trader said the shift was already visible in positioning.&nbsp;
<blockquote>
 “Russell 2000 and stocks in general catching a strong bid post jobs report,” <a href="https://x.com/wizardofsoho/status/2009637826737139786?s=20" rel="noopener noreferrer nofollow">wrote </a>Wizard of SoHo, adding, “Crypto losing support. Literally nobody with money wants to buy crypto; they all want to buy small cap growth stocks instead.”
</blockquote>
<h3 id="more-news">More News:</h3>
<ul>
 <li><a href="https://www.thestreet.com/crypto/markets/cathie-wood-predicts-trump-wont-be-a-lame-duck-in-2026" rel="noopener noreferrer nofollow">Cathie Wood predicts Trump won't be a 'lame duck' in 2026</a></li>
 <li><a href="https://www.thestreet.com/crypto/markets/trump-will-not-pardon-sam-bankman-fried" rel="noopener noreferrer nofollow">Trump will not pardon Sam Bankman-Fried</a></li>
 <li><a href="https://www.thestreet.com/crypto/policy/jpmorgan-crypto-firms-pour-millions-into-pro-trump-pac" rel="noopener noreferrer nofollow">JPMorgan, crypto firms pour millions into pro-Trump PAC</a></li>
</ul>
<h2 id="risk-assets-lose-momentum-as-crypto-drifts-lower">Risk assets lose momentum as crypto drifts lower</h2>
That rotation showed up most clearly in crypto markets, where price action softened without signs of panic selling.&nbsp;
Several large-cap altcoins underperformed over the past 24 hours as trading volumes thinned and momentum faded.
<figure>
 <figcaption>
 Crypto market heatmap as per <a href="https://coinmarketcap.com/crypto-heatmap/" rel="noopener noreferrer">CMC </a>at press time
 </figcaption>
</figure>
XRP lagged Bitcoin as traders pulled back from higher-beta exposures.
Across the broader market, altcoins posted mixed results, reflecting capital rotation rather than forced liquidation.
The <a href="https://www.coingecko.com/" rel="noopener noreferrer nofollow">muted move</a> suggested investors were recalibrating expectations around liquidity rather than exiting risk altogether.
At the time of writing, Ether slipped about 0.5% to around $3,085, while XRP fell roughly 1.5% near $2.09. Solana dropped close to 1% to around $136, and Dogecoin was down just under 1% near $0.14.
Bitcoin was last trading around $90,400, down roughly 0.3% on the day, maintaining its dominant share of the crypto market.&nbsp;
With January rate-cut hopes largely off the table, crypto markets now appear tied more closely to broader shifts in macro positioning, as investors weigh patience against the prospect of easier policy later in 2026.
<a href="https://www.thestreet.com/crypto/markets/exclusive-mark-cuban-responds-to-trumps-ban-on-buying-single-family-homes" rel="noopener noreferrer nofollow">Related: Exclusive: Mark Cuban responds to Trump's ban on buying single family homes</a>

Bitcoin, XRP slide as strong U.S. jobs data dims January rate-cut hopes

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