Bitcoin dropped below $75,000 on Friday, retreating to levels last seen in mid-August, as robust US employment data increased the probability of a Federal Reserve interest rate hike in December. The decline occurred despite a rebound in US equity markets, marking a divergence between cryptocurrency assets and traditional technology stocks.
Data from TradingView showed the BTC/USD pair dipping under the $75,000 threshold. The total cryptocurrency market capitalization decreased by 0.5% over the day, reflecting broad weakness across digital assets even as Wall Street’s technology sector posted gains.
Jobs data shifts rate expectations
The market move followed the release of US nonfarm payrolls data for October, which showed the economy added 165,000 jobs, significantly exceeding market expectations of 65,000. The US Bureau of Labor Statistics also revised September’s job growth figure upward from 29,000 to 60,000. The unemployment rate was reported at 4.1%, lower than the predicted 4.2%.
The strong labor figures prompted traders to adjust their outlook for monetary policy. According to data from CME Group’s FedWatch Tool, expectations of the Federal Reserve raising interest rates by 25 basis points at its December meeting rose to 76.8%, up from 66.9% prior to the data release.
Tech stocks rebound while crypto lags
While cryptocurrencies struggled, US stock markets posted gains. The S&P 500 index rose 0.6%, and the Nasdaq Composite Index advanced 1.2%. Certain technology hardware stocks saw sharper increases, with SanDisk and Micron Technologies both rising 6.3%.
Technical support under test
Keith Alan, cofounder of crypto trading platform Material Indicators, noted that Bitcoin had lost a trend line that had acted as support since mid-September. In a market analysis posted on X, Alan warned of potential further downside if the current price area fails to hold.
“As strong as this support level looks from both a technical and structural perspective, we can’t confirm its durability before the W close,” Alan wrote, referring to the weekly candle close. He indicated that a failure to maintain support around $75,500 could lead to a drop in BTC/USD to as low as $69,000.
