Key Insights:

  • Crypto market cap fell over 3% to $2.55T as digital-asset products recorded $511.9M in outflows.
  • October non-farm payrolls reached 165,000, beating forecasts of 59,000 as unemployment rate fell to 4.1%.
  • Kalshi traders priced a 79% chance of a Dec. 9 Fed hike while Bitcoin traded at $75,548.

The crypto market declined as a stronger-than-expected US jobs report pushed traders to reassess the Federal Reserve’s next move.

Bitcoin traded at $75,548 after the release, while several market indicators showed investor caution. The U.S. Bureau of Labor Statistics reported 165,000 new jobs in October. In addition, the unemployment rate dropped to 4.1%, and earlier payroll estimates were revised upward.

Crypto Market Slides as Jobs Data Revives Rate Hike Bets

October’s job gain far exceeded the 59,000 increase economists had forecast in a Wall Street Journal survey.

September’s figure was revised to 60,000, while August payroll growth rose to 186,000 from 133,000. Together, those revisions lifted the two months’ combined total by 84,000. October hiring also surpassed the 48,000 average monthly gain over the previous 12 months.

Hiring gains were high in several sectors. Professional and business services added 70,000 jobs, health care gained 42,000, and transportation and warehousing increased by 25,000.

Manufacturing employment rose by 19,000, while most other major industries changed little. Average hourly earnings climbed 14 cents, or 0.4%, to $38.00, bringing the annual increase to 3.1%.

The firm employment figures brought the Fed’s inflation focus back into the rate discussion. Fitch U.S. economics head Olu Sonola said labor-market resilience was pushing debate toward a December Fed rate hike.

Kalshi traders assigned a 79% probability to a 25-basis-point hike on December 9. They gave a 22% chance to no change and 1% to a quarter-point cut, with the trading volume reaching $4.6 million.

Bitcoin Remains Near Its Seven-Week Low

Following the US jobs report, the crypto market reacted with Bitcoin price declining by 0.3% to $75,548. That decline followed a technology-stock selloff linked to concerns that a Democratic sweep in the U.S. midterm elections could slow artificial-intelligence investment.

However, Bitcoin recovered some losses before the employment figures were released. U.S. stock futures pointed to a Nasdaq rebound, while XM analyst Raffi Boyadjian described traders’ changing view of the election outcome.

He said some traders saw a Democrat-controlled Congress as a reason for hyperscalers to scale back costly investment plans. Those plans had weighed on cash flow.

Across digital assets, the crypto market total capitalization stood at $2.55 trillion, down by 3.39%. The CMC20 index fell by 3.55% to $155.58, while the Fear and Greed Index was registered at 31. The Altcoin Season reading was 47, while the investment products recorded $511.90 million in outflows.

Crypto Market Stays Cautious Amid Fed Rate Hike Bets

The US Jobs report offered further context beyond the headline numbers on hiring and unemployment. The unemployment rate has stayed between 4.1% and 4.3% since March. In October, 7.1 million people were unemployed. Long-term unemployment affected 2.0 million people, equal to 27.6% of all unemployed workers.

Meanwhile, the labor-force participation rate held at 61.9%, and the employment-population ratio remained at 59.3%.

Both measures changed slightly during October. However, the number of people working part-time for economic reasons rose by 339,000 to 4.8 million. These workers wanted full-time jobs but faced reduced hours or could not find full-time positions.

The rate outlook also featured in Goldman Sachs’ revised gold forecasts. The bank lowered its end-2026 target to $4,150 and its end-2027 target to $4,800.

It expected a December rate hike, with possible cuts beginning in late 2027. Goldman projected central-bank purchases of 60 tonnes monthly and about 15% gold upside by the end of 2027.

The post Crypto Market Faces Volatility Amid Strong US Job Report and Fed Rate Hike Woes appeared first on The Coin Republic.