CMC News

Bitcoin Steadies After U.S. Unemployment Hits 4-Year High

$BTC traded at $87,152 following the release of combined October-November jobs data that shows U.S. unemployment reached 4.6%, the highest rate since 2021. The cryptocurrency initially dropped near $85,000 before recovering Tuesday morning.

The Bureau of Labor Statistics published delayed nonfarm payroll figures covering two months after a 43-day government #shutdown postponed the standard monthly reporting schedule. The economy added 64,000 jobs in November but lost 105,000 positions in October.

$ETH fell below $3,000 late Monday and remained under that level, trading at $2,935 after losing 3.5% over 24 hours. Both assets showed #volatility as markets processed the employment data and its implications for Federal Reserve policy.

#Prediction markets on Myriad show 69% probability that #Bitcoin will climb back above $100,000 before falling to $69,000. The outlook reflects expectations that weaker labor data may prompt additional Fed rate cuts in 2026.

New York Federal Reserve President John Williams stated Monday that supply chain pressures remain contained, housing inflation continues to slow, and wage growth points to gradual deceleration. He projected inflation will drop to just under 2.5% next year before reaching the Fed's 2% target in 2027.

Mitsubishi UFJ Financial Group senior currency economist Lee Hardman said the bank anticipates multiple rate cuts next year based on Williams' comments. Lower rates typically weaken the dollar and improve conditions for risk assets including #cryptocurrency.

August and September job tallies were revised downward in the latest report. BLS analysts noted employment gains in the healthcare and construction sectors while federal government positions declined.

A softer dollar historically acts as a tailwind for Bitcoin, which traders often view as an alternative store of value during easier monetary policy periods.