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Newly released US employment data following the government shutdown revealed a sharp deterioration in labour market conditions.
The Bureau of Labor Statistics published delayed figures covering October and November after a 43-day shutdown halted data collection.
November recorded a gain of 64,000 jobs, slightly above economist expectations of 50,000.
October figures were revised to show a loss of 105,000 jobs, driven largely by federal workforce reductions.
The unemployment rate rose to 4.6%, its highest level in four years.
Federal government payrolls declined by 162,000 jobs in October and a further 6,000 in November.
More than 150,000 federal employees accepted job buyout offers under efforts to shrink the civilian workforce.
Financial markets reacted negatively to the data, with major US stock indices closing lower.
Bitcoin moved in the opposite direction, rising around 2.5% despite broader risk-off sentiment.
Analysts noted bitcoin’s resilience even as it remained well below its October record high.
The weak labour backdrop has complicated the Federal Reserve’s efforts to balance inflation and employment objectives.
Headline inflation stood at roughly 3% in September, remaining above the Fed’s 2% target.
Market expectations for a January 2026 interest rate cut fell to around 24%.
The November jobs number supports a 25-basis point rate cut, but the data is soft and slightly inaccurate because of the 43-day shutdown. - Kevin O’Leary said.
Inflation is still above target and that puts the Fed in a very difficult position. - Kevin O’Leary added.
Bitcoin was trading near $87,500 at the time of reporting, reflecting modest daily gains but weekly losses.
Trading volume and market capitalisation edged higher as bitcoin dominance increased.
Futures open interest declined, while overall liquidations dropped sharply across derivatives markets.
Short sellers suffered heavier losses than long traders during the latest price move.
Market participants said bitcoin’s performance highlighted its growing divergence from traditional macro assets.
At the time of reporting, Bitcoin price was $86,708.67.