Crypto Market Wavers as US Jobs Report Signals Slowing Economy

The cryptocurrency market posted minor gains on Friday as investors reacted to the latest US nonfarm payrolls report, which showed hiring slowed in January.

Bitcoin (BTC) gained 1.4% in the past 24 hours, trading at $97,900, while Ethereum (ETH) slipped 0.7%, settling at $2,680. XRP gained 5.9% to $2.45, and Solana (SOL) increased 3% to $195, according to CoinGecko data.

The overall cryptocurrency market capitalization remained flat at $3.32 trillion in the past 24 hours. Market volatility led to the liquidation of 97,540 traders, resulting in a total of $234 million in liquidations. BTC accounted for $61 million of these liquidations, while ETH) contributed $46 million. Liquidations from altcoins collectively totaled $25 million, according to Coinglass.

Macro Data

Experts said the hiring slowdown has added to investor uncertainty, prompting traders to speculate on the Federal Reserve’s next move regarding interest rates. At the same time, traders are weighing the impact of institutional Bitcoin accumulation against broader macroeconomic risks and ongoing market volatility.

“The market today is certainly a reflection of broader macro uncertainty,” Ian Balina, CEO of Token Metrics, told The Defiant. “Investors are eyeing inflation data, interest rates, the potential impact of lingering Trump-era tariffs, and the news surrounding the US government.”

He noted that while traditional markets digest these factors, crypto remains in “a tug-of-war” between bullish institutional inflows — like Strategy's recent $584 million Bitcoin buy — and short-term sell pressure from profit-taking.

Tariff Uncertainty

James Toledano, Chief Operating Officer at Unity Wallet, echoed the sentiment, noting that the crypto market has experienced similar conditions during Trump’s first administration.

“The implementation of tariffs frequently contributes to inflationary pressures by increasing the cost of imported goods,” he said.

However, Toledano pointed out that between 2018 and 2019, Trump’s policies did not trigger inflation but did have a significant impact on financial markets and crypto—especially Bitcoin—in a way similar to what we are seeing now.

Despite current uncertainties, he noted that “crypto today is a $3.2 trillion juggernaut, and at this time last year, a single Bitcoin cost $47,000—so things are looking pretty good right now.”

US Employment Report

The U.S. economy added 143,000 jobs in Jan. 2025, marking a slowdown from December 2024’s revised gain of 307,000 positions.

Despite the deceleration in job growth, the unemployment rate edged down to 4.0% from 4.1% in Dec. 2024. Economists attribute the slower job growth to adverse weather conditions, including wildfires in California and cold weather across much of the country.