Bitcoin Drops Below $87,000 Amid Strong U.S. Jobs Data and Shifting Market Sentiment
New York — In the latest bitcoin news, the world’s largest cryptocurrency has fallen to its lowest level since April 2025, reflecting renewed investor caution toward riskier assets. According to CNBC, Bitcoin (BTC) dropped as low as $86,325.81 on Thursday before stabilizing around $86,690, marking a sharp retreat from its summer highs.
The decline comes as markets reassess the likelihood of a Federal Reserve interest rate cut in December, following stronger-than-expected U.S. employment figures. The latest jobs report showed an addition of 119,000 new positions in September, more than double economists’ forecasts of 50,000. This robust labor data dampened expectations of near-term monetary easing, sending ripples through both equity and crypto markets.
Market Reaction: Risk Assets Under Pressure
The latest bitcoin news underscores a broader pullback across digital and traditional markets. Traders shifted away from high-volatility assets, including cryptocurrencies and AI-linked equities, as uncertainty surrounding central bank policy intensified.
Bitcoin’s drop led a widespread crypto market decline, with Ethereum (ETH) losing over 3%, falling below $3,000, while XRP slipped 2.3%, trading under $2.00. Meanwhile, Dogecoin remained mostly unchanged.
Analysts say this synchronized decline signals a cooling of speculative appetite following weeks of volatile price swings. Bitcoin’s correlation with tech-heavy stocks, particularly those connected to the AI boom, has remained high in recent months. As investors took profits from Nvidia and other major tech names, their bitcoin holdings were also trimmed, further amplifying the sell-off.
Fear and Greed Index Turns Neutral After Months of Euphoria
According to the Fear and Greed Index, which measures overall market sentiment toward cryptocurrencies, investor mood has shifted sharply from “greed” to a neutral stance this week. The index — often used by traders to gauge whether markets are overheating or oversold — now sits at 52, down from 68 earlier in November.
This cooling sentiment coincides with Bitcoin’s sharp retreat, suggesting that traders are adopting a “wait-and-see” approach amid macroeconomic uncertainty. Historically, when the fear and greed index declines toward neutral or fear territory, Bitcoin tends to consolidate before finding a new direction.
Market analysts from crypto research firm CoinMetrics noted that “while short-term weakness persists, the broader trend remains tied to the Fed’s policy path. A confirmed rate cut could reignite risk appetite and push Bitcoin back toward the $95,000 mark.”
Stronger Jobs Data Clouds Fed Rate Outlook
Thursday’s bitcoin news came on the heels of unexpectedly strong U.S. jobs numbers, which fueled speculation that the Federal Reserve might delay cutting rates until early 2026. According to the CME Group’s FedWatch tool, the probability of a December rate cut has dropped to around 40%, down from nearly 70% just a month ago.
Higher interest rates generally weigh on speculative assets like Bitcoin, as investors shift toward safer instruments with better yields. The dynamic has been evident throughout 2025, with Bitcoin struggling to maintain momentum whenever U.S. economic data signals resilience.
Despite this, some crypto strategists believe the recent decline could represent a healthy correction rather than the start of a prolonged downturn. “Bitcoin remains within its medium-term uptrend,” said one analyst. “The $85,000–$88,000 range is a critical support zone. If it holds, we could see renewed upside into early 2026.”
Long-Term Investors Stay Calm Amid Volatility
While short-term traders reacted swiftly to the latest bitcoin news, long-term holders appear largely unfazed. On-chain data from Glassnode shows that the percentage of Bitcoin held in “illiquid supply” — wallets that have not moved coins in over six months — remains near all-time highs.
This indicates continued conviction among institutional investors and large holders, even as retail sentiment cools. Many see current price levels as an opportunity to accumulate ahead of the next halving event expected in 2026, which historically has been bullish for Bitcoin prices.
The fear and greed index may be signaling caution, but veteran investors often view such periods as strategic buying windows.
Broader Market Outlook
As Bitcoin’s price retreats, attention now turns to whether the Federal Reserve’s next move could reverse current trends. If inflation data continues to cool and rate cuts resume in 2026, analysts believe Bitcoin could quickly regain momentum.
However, with economic uncertainty rising and risk appetite fading, Bitcoin’s volatility is likely to remain elevated. The market’s next move may depend as much on macroeconomic headlines as on developments within the crypto ecosystem itself.
Conclusion: Bitcoin Faces a Critical Turning Point
This week’s bitcoin news highlights a pivotal moment for digital assets. With fear and greed index readings neutralizing and macro pressures mounting, Bitcoin is once again caught between optimism for future gains and caution over short-term headwinds.
Whether this is a temporary dip or the start of a deeper correction will depend on how both traders and policymakers react in the coming weeks.
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