CRYPTOCURRENCY PRICES FALL AS US UNEMPLOYMENT RISES TO 4.3%
Crypto market dip US jobs data: On February 11, the cryptocurrency market experienced a broad decline as traders reacted to the latest U.S. non-farm payrolls (NFP) data and anticipation of the upcoming U.S. consumer inflation report.
Major digital assets, including Bitcoin (BTC), slipped below key levels, signaling continued caution among investors.
Bitcoin and Altcoins Experience Losses
Bitcoin dropped below $67,000, while several altcoins recorded even sharper declines:
- MYX Finance: -18% in 24 hours
- Humanity Protocol, Decred, World Liberty Financial, and Binance Coin: among the top laggards
The broader market decline reflects both short-term macroeconomic concerns and geopolitical uncertainty.
Key Takeaways from the US Jobs Report
The Bureau of Labor Statistics reported that the U.S. economy added 130,000 jobs in January, an improvement from 50,000 in December.
Unemployment rate: Improved to 4.3%
- Average hourly earnings: Slowed to 3.7%
- Sector trends: Government payrolls fell by 42,000, while manufacturing added 5,000 jobs
Despite overall job growth, analysts warn that the strength is narrow and uneven, concentrated in health care, social assistance, and construction. Several sectors, including government, saw declines or minimal growth, suggesting the labor market remains in a “low hire, low fire” state.
Former Fed economist Claudia Sahm noted that 2025 revisions showed more than 1 million jobs lost over four months of payroll declines, indicating a potential “hiring recession.” This suggests the Fed may have overestimated labor market strength, which could influence monetary policy.
Upcoming Inflation Report a Key Catalyst
Investors are now eyeing the U.S. consumer inflation report, scheduled for release on Friday. Economists polled by Reuters expect inflation to have slowed in January.
The outcome could influence both crypto markets and broader risk assets, as traders adjust positions ahead of possible Federal Reserve actions.
Geopolitical Concerns Add Pressure
Crypto prices also reacted to geopolitical uncertainty in the Middle East. Reports indicate that President Trump is considering expanding the U.S. military presence near Iran, potentially adding another aircraft carrier.
This comes ahead of a meeting with Israeli Prime Minister Benjamin Netanyahu, who is reportedly advocating for stronger U.S. measures against Iran.
Market data from Polymarket shows that the perceived odds of a U.S. strike on Iran have risen, contributing to a surge in crude oil, gold, and the Swiss franc—traditional safe-haven assets. Cryptocurrencies, by contrast, have continued to demonstrate they are not safe-haven instruments during geopolitical stress.
Market Sentiment and Futures
The Crypto Fear and Greed Index remains in the extreme fear zone, reflecting ongoing investor caution.
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Open interest in crypto futures also continues to fall, staying below $100 billion, down from last year’s high of $255 billion. Low open interest and extreme fear readings suggest reduced leverage and lower market participation, which can amplify short-term price volatility.
What to Watch
Traders are closely monitoring:
- The upcoming U.S. inflation report
- Continued developments in U.S.-Iran geopolitical tensions
- Market sentiment metrics, including the Fear and Greed Index and futures open interest
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Short-term volatility is expected to remain high, with Bitcoin and altcoins likely reacting sharply to both macroeconomic and geopolitical news.
Conclusion
On February 11, the cryptocurrency market dipped as traders reacted to U.S. non-farm payrolls (NFP) data and awaited the upcoming U.S. inflation report. Bitcoin fell below $67,000, while several altcoins, including MYX Finance, Humanity Protocol, Decred, World Liberty Financial, and Binance Coin, posted significant losses.
The U.S. jobs report showed 130,000 new jobs in January, with unemployment at 4.3% and average hourly earnings slowing to 3.7%. Analysts noted that the labor market’s strength was concentrated in a few sectors, signaling a “low hire, low fire” environment and a potential hiring recession.
Geopolitical tensions, including President Trump’s consideration of expanding military presence near Iran and upcoming talks with Israeli PM Netanyahu, also weighed on markets. Safe-haven assets like gold and oil rose, while crypto proved not to be a haven.
Market sentiment remains cautious, with the Fear and Greed Index in extreme fear and crypto futures open interest below $100 billion. Investors are closely watching the inflation report, geopolitical developments, and sentiment indicators to gauge short-term market trends.
