Bitcoin’s wild ride: Jobs report sparks volatility ahead of Fed and BoJ moves
Bitcoin’s price swung sharply after a mixed US jobs report revealed unexpected labour market strength. While employment rose more than forecast, revisions to past data and a rise in part-time work created uncertainty. The volatility came as investors braced for key inflation figures and the Bank of Japan’s upcoming rate decision.
The US jobs report for December 2025 initially triggered a 3% rally in Bitcoin, pushing it to $88,000. However, gains faded quickly as traders digested the details: October’s job numbers were revised down by 105,000, November saw only 64,000 new roles, and the unemployment rate climbed to 4.6%. The shift toward part-time employment further dampened confidence, leading to a broader retreat in risk assets.
Bitcoin’s price later settled around $86,600, reflecting renewed caution. Earlier in the week, US spot Bitcoin ETFs recorded $634 million in outflows, signalling a risk-off mood ahead of the Bank of Japan’s policy announcement. Analysts noted that hotter inflation could delay Federal Reserve rate cuts, weighing on Bitcoin, while cooler data might revive momentum.
Market watchers now eye key Bitcoin levels: $83,000, $90,000, and $95,000. David Hernandez, a crypto specialist at 21Shares, warned of immediate selling pressure if support zones fail. Adding to concerns, long-term Bitcoin holders have been selling since July 2025, with offloading hitting a five-year peak—potentially marking a US market top.
The coming week brings two major events: US inflation data and the Bank of Japan’s rate decision. Both could trigger further volatility in Bitcoin’s price. With traders adjusting positions and liquidity hunts possible, short-term movements may hinge on whether key support levels hold.
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