The U.S. Bureau of Labor Statistics (BLS) released the delayed January nonfarm payrolls report on February 11 evening, and the data came in well above expectations, triggering a sharp sell-off in cryptocurrency markets. Bitcoin (BTC) crashed from nearly $69,000 to below $66,000, while Ethereum (ETH) fell from above $2,000 to a low under $1,900.
Bitcoin swings $3,000 in one night
Before the release, BTC had been strengthening toward $69,000. At 11 p.m., when the data hit, the market reversed sharply — BTC plunged below $66,000, wiping out more than $3,000 in a few hours. In the early morning, a technical bounce pushed BTC back to $68,317, but it later retreated. At press time, BTC trades at $67,495, with a 24-hour range exceeding 4%.
Ethereum loses $2,000 support level
ETH had climbed above the psychological $2,000 level before the release. After the payrolls data, it experienced a violent wick, briefly dipping under $1,900 — a drop of over 5%. At press time, ETH is at $1,957, still below the $2,000 round number. According to Coinglass, 147,000 traders were liquidated in 24 hours, mostly longs, with total liquidations exceeding $470 million. The number of liquidations is high, though the dollar amount is relatively moderate compared to past events.
Nonfarm payrolls beat by 2.4x: three key points
The BLS reported 130,000 new jobs in January, nearly 2.4 times the Dow Jones consensus estimate of 55,000. The unemployment rate fell to 4.3% from 4.4%. By sector, healthcare led with 82,000 new jobs, social assistance added 42,000, and construction 33,000. Federal government and financial employment declined. Notably, the BLS also sharply revised down 2025 annual data: after seasonal adjustment, total job growth for 2025 was revised from 584,000 to just 181,000, and monthly average fell from 48,000 to 15,000 — indicating that last year's labor market was much weaker than earlier reported.
Why nonfarm data hit crypto so hard
The transmission channel is: strong jobs → Fed feels no pressure to cut → rates stay high → liquidity constrained → risk assets under pressure. The Fed paused its rate-cutting cycle in January, holding rates at 3.5%-3.75%. Markets had expected three more cuts in 2026, but the hot January data suggests the labor market is not cooling enough, likely delaying the next cut. For crypto, fading rate-cut expectations directly shrink the "liquidity-driven" upside. Short-term price pressures may persist.
Contradictory signal: massive 2025 revision hints at fragility
Some analysts flip the story: the 2025 revision cut over 400,000 jobs, exposing underlying weakness in the U.S. labor market. Even if January data looked strong, the Fed could restart cuts later this year if the economy slows. In the short term, nonfarm data is bearish for crypto, but the medium-term picture is mixed. Investors should watch the February nonfarm report due March 6 and subsequent FOMC decisions to gauge whether the current correction is a one-off jolt or a trend reversal.