Bitcoin drops to $60,000 after stronger US jobs report

Bitcoin fell to about $60,000 on Friday during U.S. trading after the Labor Department’s monthly employment report showed stronger hiring than many traders had expected. The move came as markets quickly repriced the odds of earlier Federal Reserve rate cuts.

The report pushed Treasury yields and the U.S. dollar higher. Investors shifted toward lower-risk assets, reducing demand for riskier investments including cryptocurrencies.

Traders reduced leveraged bitcoin positions and adjusted portfolios, leading to selling across spot and derivatives markets. Equity indexes also weakened on the news, and the price decline in bitcoin was mirrored across other major cryptocurrencies.

Trading volumes rose as buyers and sellers reacted to the new macroeconomic outlook. Liquidity tightened in parts of the crypto market, which amplified price moves during the early stages of the sell-off.

Options markets for bitcoin showed higher implied volatility, indicating traders expect larger price swings in the near term.

The decline followed recent gains that had been supported by inflows into bitcoin exchange-traded products and a broader rally in risk assets earlier this quarter. Those flows had previously reduced sensitivity to macroeconomic data.

Analysts point to the link between rate expectations and demand for speculative assets: when data suggest the Fed may delay cuts, some investors prefer cash and Treasuries over higher-risk positions.

Market participants are watching upcoming economic releases and remarks from Federal Reserve officials for further signals on the timing of rate cuts and potential effects on asset prices.