Bitcoin price today: sinks below $86k as mixed US jobs data dents Fed cut hopes

Investing.com-- Bitcoin fell sharply on Friday, sliding below $86,000 and heading for a steep weekly loss as mixed U.S. labour data dampened expectations of a Federal Reserve rate cut next month and triggered another wave of selling.

The world’s biggest cryptocurrency last traded 6.8% lower at $85,702.6 by 01:21 ET (06:21 GMT) after briefly touching an intraday low around $85,417.6.

The move marked its weakest levels since April and extended losses from earlier in the week, with Bitcoin set to lose more than 8% this week.

US jobs data dims Fed easing hopes

Thursday’s long-delayed U.S. September jobs report showed payrolls rising by 119,000 while the unemployment rate climbed to 4.4%, offering an ambiguous read on the labour market.

The report also did little to clarify the Fed’s policy outlook, especially with the October jobs update still missing due to the government shutdown.

Rate futures showed markets trimming expectations for a December rate cut. The murky policy backdrop has dampened risk appetite and left cryptocurrencies particularly exposed.

Investors have been reluctant to add positions until clarity emerges on the Fed’s path, while some leveraged traders have unwound bets following Bitcoin’s break below key technical support levels.

Media reports indicated sustained selling by large holders, with several reports noting that liquidity has thinned in recent sessions, exacerbating price swings.

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Strategy downturn in focus as analysts warn of index exclusion

Bitcoin’s deepening slide has put fresh pressure on Strategy Inc (NASDAQ:MSTR) as the cryptocurrency approaches the firm’s average break-even level of $74,430.

The stock is set for its eighth consecutive weekly decline, last closed at $177.14, near its 52-week low of $181.73. Shares have plummeted more than 55% over the past six months.

JP Morgan analysts said the company now faces a potential removal from major equity indices. MSCI will decide on Jan. 15 whether firms heavily tied to digital-asset holdings qualify for continued inclusion.

The bank warned that an exclusion could trigger billions of dollars in passive outflows, adding to volatility already driven by the downturn in crypto markets.

Crypto price today: altcoins plunge, Ether drops 7%

The broader crypto market also fell, mirroring Bitcoin’s declines amid a risk-off mood.

World no.2 crypto Ethereum slumped 7% to $2,809.92.

World no. 3 crypto XRP also plunged 7% to $1.98.

Solana fell about 8%, while Cardano declined 9% and Polygon lost 5.6%

Among meme tokens, Dogecoin retreated 5.7%, while $TRUMP fell 3.5%.