Bitcoin and Ethereum experienced volatility in the wake of delayed U.S. jobs data that revealed the highest unemployment rate since 2021. Following the release of the combined October-November employment statistics by the Bureau of Labor Statistics, both cryptocurrencies saw a brief dip before recovering.
Investors reacted to the report, which indicated that the U.S. unemployment rate had reached 4.6%, its highest level in four years, leading to fluctuations in cryptocurrency prices. At one point during Monday trading, Bitcoin dropped to nearly $85,000 but subsequently rebounded, trading at approximately $87,152, a 0.5% decrease over the past day, according to CoinGecko. Conversely, Ethereum fell below the $3,000 mark and remained low, changing hands at around $2,935—down 3.5% in the same timeframe.
Despite these setbacks, optimism persists in the market regarding Bitcoin’s potential recovery. Users on the prediction market platform Myriad express a 69% likelihood that Bitcoin will ascend back to the $100,000 mark before a subsequent decline to $69,000. This optimism is partly driven by expectations of Federal Reserve rate cuts in the near future, which some analysts believe may bolster cryptocurrency prices.
The unemployment report, which was originally scheduled for release in October but was postponed due to a 43-day government shutdown, revealed that the economy also lost 105,000 jobs in October, while November recorded a gain of 64,000 jobs. The employment situation in the U.S. demonstrated little change from month to month, with sectors such as healthcare and construction showing growth, while federal government jobs continued to decline.
Lee Hardman, a senior currency economist at Mitsubishi UFJ Financial Group, anticipates several rate cuts in 2026, a sentiment supported by remarks from New York Federal Reserve President John C. Williams. He noted that there have been no widespread supply chain constraints, housing inflation is easing, and wage growth indicates a gradual slowing of the economy. Hardman projected inflation would fall to just under 2.5% in the coming year, eventually reaching the Fed’s target of 2.0% by 2027.
Historically, a weakening U.S. dollar has tended to benefit Bitcoin, as traders often view it as an alternative asset in times of shifting monetary policy. A weaker dollar may enhance global liquidity, making dollar-denominated assets like cryptocurrencies more attractive to international investors.
As markets respond to these developments, the volatility in Bitcoin and Ethereum prices continues to be a pivotal area of focus for investors and analysts alike.
