The crypto market declined on February 11 as traders digested stronger-than-expected U.S. non-farm payrolls data and rising geopolitical risks. Bitcoin slipped below $67,000, while MYX Finance tumbled over 18% in 24 hours. Other altcoins including Humanity Protocol, Decred, World Liberty Financial, and Binance Coin also posted significant losses.
Jobs data beats expectations but shows underlying weakness
The Bureau of Labor Statistics reported that the economy added 130,000 jobs in January, up from 50,000 in December, and the unemployment rate fell to 4.3%. Average hourly earnings eased to 3.7% year-over-year. However, former Fed economist Claudia Sahm noted that revisions erased more than a million jobs, with four months of outright payroll declines – painting 2025 as a "hiring recession." Government employment dropped by 42,000, and manufacturing added only 5,000. Most gains came from health care, social assistance, and construction, suggesting a "low hire, low fire" labor market. The Fed may have misjudged economic strength, raising the risk that policy remains too tight.
Geopolitical tensions: Trump meets Netanyahu, Iran strike odds rise
Markets are also bracing for a potential U.S. strike on Iran. President Trump is reportedly considering sending an additional aircraft carrier to the region ahead of his meeting with Israeli Prime Minister Benjamin Netanyahu, who has long advocated for regime change in Iran. Netanyahu is pushing for discussions to include ballistic missiles and Iran’s support for rebel groups. Polymarket data shows the probability of a Trump attack on Iran has surged in recent days. Safe-haven assets like crude oil, the Swiss franc, and gold continue to climb, while Bitcoin and crypto have not behaved as safe havens.
Open interest stays low, fear gauge remains extreme
Market sentiment is cautious. The Crypto Fear & Greed Index remains in "extreme fear" territory. Futures open interest across crypto exchanges has stayed below $100 billion, far from last year’s high of over $255 billion, indicating capital withdrawal. All eyes are on Friday’s U.S. Consumer Price Index (CPI) report. Economists polled by Reuters expect January inflation to have slowed – a reading that could ease some pressure. But an upside surprise might reinforce hawkish Fed expectations and further dent risk assets.