Understanding Bitcoin’s Reaction to the U.S. Jobs Report
Bitcoin’s price dynamics took an interesting turn following a ‘mixed’ U.S. Jobs report for November. The report initially triggered a short-term rally, with BTC gaining over 3% to reach $88K from its earlier level of $85K. However, this momentum was short-lived, as the cryptocurrency dipped back to $86.6K shortly after.
Key Insights from the U.S. Jobs Report
The labor data revealed the addition of 64,000 jobs, beating the expected figure of 51,000. While this might signal a resilient job market, it also implies that the Federal Reserve has fewer reasons to cut interest rates. The likelihood of leaving rates unchanged at their current levels (3.50%-3.75%) increased by 3%, now standing at 78%. This development cooled investor sentiment, leading to increased retracement pressure on Bitcoin.
Interestingly, the report also highlighted a decline in quality full-time roles, replaced by a surge in part-time positions. This shift further compounded market uncertainties, causing heightened volatility in Bitcoin’s short-term price action.
Expert Analysis and Market Impact
David Hernandez, a Crypto Investment Specialist at 21Shares, stated, “Immediate selling pressure may emerge as traders re-evaluate the risk landscape, forcing BTC to defend its key support zone.” This sentiment reflects the broader market’s cautious approach amid increasing volatility and external economic pressures.
The upcoming economic calendar remains crucial for BTC traders, with U.S. inflation data set to be released on December 18, and the Bank of Japan’s (BoJ) rate decision following on December 19. A higher-than-expected inflation print could further tighten the Federal Reserve’s stance, pushing BTC prices lower. Conversely, cooler inflation data could reinvigorate momentum for Bitcoin in the short term.
Additional Market Trends
Market movements show that long-term holders (LTH) have been relentless in offloading BTC holdings since July 2025, reaching a five-year record high. Historical patterns suggest that this level of selling activity often coincides with market tops. Furthermore, U.S.-based spot BTC ETFs faced significant outflows, amounting to $634 million earlier this week, reflecting a cautious or risk-averse sentiment among investors in anticipation of the BoJ’s key decision.
What Lies Ahead for Bitcoin?
Short-term price indicators point toward key levels of focus. The immediate support lies at $83K, while resistance levels are parked at $90K and $95K. With volatility expected to surge in the coming days, traders should remain cautious and monitor these critical levels.
Interestingly, recent predictions from industry leaders like Grayscale hint at a new all-time high (ATH) for Bitcoin in the mid-term, despite the current market jitters.
Explore Useful Tools to Navigate BTC Price Activity
For those actively trading or monitoring cryptocurrency prices, investing in tools like the Trezor Model T Hardware Wallet can offer enhanced security for digital assets. A reliable hardware wallet is essential in volatile markets to ensure the safety of your Bitcoin holdings.
