The crypto market took a hit on February 11 as investors reacted to fresh U.S. labor market data and rising geopolitical tensions.
Bitcoin slipped below the $67,000 mark, dragging most altcoins down with it. The sell-off followed the release of January’s non-farm payroll (NFP) report and ahead of a highly anticipated U.S. inflation reading due later this week.
Stronger jobs data rattles crypto markets
According to the Bureau of Labor Statistics, the U.S. economy added 130,000 jobs in January — a notable rebound from December’s 50,000 increase. Meanwhile, the unemployment rate improved to 4.3%, and average hourly earnings slowed to 3.7%.
At first glance, the numbers suggest resilience in the labor market. But the full picture isn’t that simple.
While hiring picked up in sectors like healthcare, social assistance, and construction, other areas remained weak. Government payrolls dropped by 42,000 jobs, and many industries showed little to no growth. Manufacturing added just 5,000 positions.
Even more concerning, job revisions revealed that 2025 was weaker than initially reported. Over one million jobs were revised lower, and four months showed outright payroll declines. Some economists have described the environment as a “hiring recession,” characterized by low hiring and low firing activity.
This mixed labor data complicates the Federal Reserve’s outlook. If the Fed previously overestimated economic strength, its tight monetary policy stance may now appear overly aggressive.
Crypto investors reacted cautiously.
Bitcoin and altcoins extend losses
Bitcoin fell below $67,000 following the report, continuing its recent downtrend. Altcoins suffered steeper losses, with MYX Finance plunging more than 18% in 24 hours. Other laggards included Humanity Protocol, Decred, World Liberty Financial, and Binance Coin.
Market sentiment remains fragile. The Crypto Fear and Greed Index is still deep in the extreme fear zone, and futures open interest has dropped below $100 billion — sharply down from last year’s peak of over $255 billion. Lower open interest typically signals reduced speculative activity and weaker momentum.
Inflation data now in focus
Traders are now turning their attention to Friday’s U.S. consumer inflation report. Economists surveyed by Reuters expect inflation to show signs of cooling in January.
If inflation slows meaningfully, it could ease pressure on the Federal Reserve and potentially stabilize risk assets, including cryptocurrencies. However, any upside surprise could intensify volatility.
For now, uncertainty dominates.
Geopolitical tensions add pressure
Beyond economic data, geopolitical developments are also weighing on sentiment.
Reports indicate that President Donald Trump is considering expanding U.S. military presence in the Middle East, potentially adding another aircraft carrier to the region. This comes ahead of a meeting with Israeli Prime Minister Benjamin Netanyahu, who has long advocated for tougher measures against Iran.
Prediction market data from Polymarket shows rising odds of a U.S. strike on Iran. As tensions climb, traditional safe-haven assets like gold and the Swiss franc have gained ground. Crude oil prices have also risen.
Bitcoin, however, has once again demonstrated that it does not consistently behave like a safe-haven asset during periods of geopolitical stress.
A fragile market environment
The combination of stronger headline job growth, downward revisions, geopolitical risk, and upcoming inflation data has created a fragile environment for crypto markets.
Investors are navigating a complex mix of macroeconomic uncertainty and global tensions. Until clearer signals emerge from inflation data or Federal Reserve guidance, volatility is likely to remain elevated.
For now, caution is ruling the crypto space.
