Bitcoin and Ethereum experienced renewed volatility after fresh U.S. labour market data revealed the country’s highest unemployment rate since 2021, briefly rattling crypto markets before prices began to stabilise. The data, released by the Bureau of Labour Statistics, combined employment figures from October and November following delays caused by a prolonged government shutdown, injecting uncertainty into already fragile market sentiment.
The unemployment rate rose to 4.6%, marking a four-year high and prompting an initial sell-off across major cryptocurrencies. Bitcoin fell sharply in early trading before rebounding, while Ethereum struggled to recover from deeper losses. At the time of reporting, Bitcoin was trading around $87,152, down roughly 0.5% over the past 24 hours after briefly dipping close to $85,000 earlier in the day. Ethereum slipped below the psychologically important $3,000 level late Monday and was last changing hands near $2,935, reflecting a daily decline of about 3.5%.
Despite the short-term pullback, broader market expectations remain tilted toward a recovery rather than a prolonged downturn. On prediction market platform Myriad, traders continue to express confidence in Bitcoin’s upside, assigning a 69% probability that the asset will return to $100,000 before falling to $69,000. That optimism suggests investors view the recent dip as a macro-driven wobble rather than a structural shift in the crypto market’s trajectory.
The delayed employment report painted a mixed picture of the U.S. economy. While job growth in November totalled 64,000, the economy shed 105,000 jobs in October, and employment figures for August and September were revised downward. Employment gains were concentrated in healthcare and construction, while federal government jobs continued to decline. The unusual release schedule stemmed from a 43-day government shutdown that ended in mid-November, forcing agencies to consolidate multiple months of data into a single report.
Economists say the softer labour market strengthens the case for monetary easing. Lee Hardman, a senior currency economist at Mitsubishi UFJ Financial Group, noted that expectations are building for several interest rate cuts in 2026. He pointed to recent comments from New York Federal Reserve President John C. Williams, who highlighted easing housing inflation, slowing wage growth, and the absence of major supply chain pressures. Williams suggested inflation could fall to just under 2.5% next year before returning to the Fed’s 2% target in 2027.
For crypto markets, that outlook matters. Anticipation of lower interest rates typically weighs on the U.S. dollar, which has historically acted as a tailwind for Bitcoin. A weaker dollar can improve global liquidity conditions and boost demand for dollar-denominated risk assets, including cryptocurrencies. While short-term volatility remains tied to macroeconomic data, many traders appear to believe that easing monetary policy could once again support a broader crypto rebound in the months ahead.
