The US unemployment rate rose to 4.6%, its highest level since September 2021, provoking immediate volatility in major digital assets. Bitcoin and Ethereum registered short-term declines as markets digested the labor data and its implications for Federal Reserve policy.
The jobs report triggered rapid price moves across crypto markets. Bitcoin briefly fell below the $87.000 mark, touching intraday lows near $85.300, while Ethereum declined about 3.5% to roughly $2.940. The broader crypto market capitalization contracted by approximately 3.5% overnight, and the Crypto Fear & Greed Index plunged into “extreme fear” territory. The sell-off produced around $487 million in long liquidations across exchanges, with Ethereum accounting for slightly higher liquidation volumes than Bitcoin.
Liquidations are forced closing of leveraged positions when margin requirements are breached. These metrics indicate heightened short-term risk and reduced risk appetite as traders adjusted positions.
Derivatives flows and liquidation clusters amplified the price moves. The concentrated long liquidations suggest elevated leverage on the buy side and quick stops near recent support levels. Market participants interpreted the rising unemployment figure as increasing the odds of future monetary easing; however, that prospective easing did not prevent an immediate risk-off response as investors recalibrated exposures.
Derivatives positioning and sentiment drivers
Analysts and traders are parsing the labor weakness for its effect on the Federal Reserve’s path. A softer labor market is now widely seen as increasing the probability of rate cuts, a potential medium-term tailwind for risk assets including Bitcoin and Ethereum. Still, the initial market reaction shows that macro shocks can produce short-term selling even when they point to looser policy later; investors appear to be de-leveraging and awaiting clearer Fed signals before committing to long positions.
This dynamic—near-term deleveraging followed by potential renewed risk appetite if policy shifts materialize—frames the immediate outlook for crypto. Lower interest rates tend to raise the appeal of higher-yield or non-sovereign assets by increasing liquidity, but the transition period can be volatile.
The unemployment jump to 4.6% on 16 de dic. de 2025 caused an immediate wobble in Bitcoin and Ethereum, marked by price declines, a sharp sentiment swing, and sizable long liquidations.
