Cryptocurrency Market Extends Losses as Upbeat U.S Payrolls Data Dampens Investor Sentiment

The cryptocurrency market continued its downward trend for a fourth consecutive day, influenced by regulatory challenges, investor apprehension, and macroeconomic concerns triggered by this morning's non-farm payroll (NFP) data release.

At the time of writing, Bitcoin (BTC) is down another 1% in the past 24 hours, trading at $93,400. Ethereum (ETH) followed a similar trend, dropping 2.6% to $3,236. XRP declined by 1.7% to $2.28, while Solana (SOL) fell 3.2% to $186. The overall cryptocurrency market capitalization decreased by 2.6%, now standing at $3.4 trillion, according to CoinGecko.

In the past 24 hours, 115,321 traders were liquidated, with total liquidations reaching $375 million, according to CoinGlass. BTC accounted for $98 million in liquidations, while ETH followed with $92 million. Altcoins recorded around $49 million in liquidations.

Strong Jobs Market

The Bureau of Labor Statistics (BLS) reported Friday that the U.S. added 256,000 jobs in December 2024, exceeding market expectations of 160,000. The report also revealed that the unemployment rate edged down to 4.1% from 4.2%.

Stronger-than-expected payroll data could pressure the crypto market, as a resilient labor market may prompt the Federal Reserve to maintain high interest rates, experts explained.

“This morning's job report saw 256K added versus 155-165K Wall Street estimates, which sent equities off the rails premarket,” said Marcus Sturdivant Sr., a former Financial Advisor at Tristate Financial Advisors. He added that more workers and higher productivity are likely to boost production and efficiency. However, rising yields could slow corporate borrowing and pressure future growth.

Monthly US Payrolls chart — Monthly US Payrolls

“The data coming out of the US would suggest a strong job market, reducing the likelihood of near-term interest rate cuts by the Fed, which would reduce expectations for the liquidity which would then benefit crypto,” Alan Orwick, co-founder of Quai Network, similarly told The Defiant on Thursday. This data also includes the JOLTS report, which revealed higher-than-expected job openings.