Bitcoin Faces Risk as Investors Realize Losses and US Jobs Data Shocks Markets

Digital asset markets are under renewed pressure as Bitcoin faces growing headwinds from macroeconomic factors and shifting trader sentiment. Over a three-day period, market participants realized more than $2 billion in losses. CryptoQuant analyst Darkfost reported that daily losses ranged between $657 million and $703 million, bringing the combined total past the $2 billion mark and approaching levels last observed during the early August market downturn. Although some holders secured profits, weekly net realized profit and loss remained negative at $191 million.

The accelerated liquidations followed a market drop below $80,000, coinciding with a broader tech stock sell-off on Thursday. The S&P 500 fell 4.36% and the Nasdaq Composite dropped 5.52% due to concerns over artificial intelligence valuations and potential data-center restrictions following the US midterms. This equity rout erased post-election relief gains and highlighted Bitcoin's susceptibility to traditional risk aversion.

Spot trading dynamics have also shifted across major venues. Darkfost noted that the 30-day moving average of Bitcoin's spot net volume delta has turned negative on Binance and Coinbase. After strong demand drove rallies between $63,000 and $85,000 in September, readings on Nov. 5 dropped to negative $28 million on Binance and negative $9.4 million on Coinbase. Both platforms are now recording more aggressive selling than buying.

US Jobs Report Increases Rate Hike Pressures

Compounding these pressures, the US economy added 165,000 jobs in October, significantly surpassing economists' expectations of 65,000. The unemployment rate dipped to 4.1%, and average hourly earnings rose by 0.4%, while prior months experienced upward revisions totaling 84,000 jobs. This robust labor market data elevated expectations for a Federal Reserve interest rate hike in December, with futures traders raising the probability of a quarter-point increase to roughly 80%.

In response, the benchmark 10-year US Treasury yield climbed to approximately 4.88%. Fabian Dori, chief investment officer at Sygnum, stated that investors should monitor longer-term Treasury yields to gauge whether financial conditions will tighten further. Higher yields increase the appeal of interest-bearing assets and diminish risk appetite.

Bitcoin faces potential drops toward $70,000 as declining spot demand and macroeconomic pressures intensify.

Market analysts have outlined critical price thresholds to watch. Bitget analyst Lewis Huang pointed to $76,500 as a near-term support level, warning that a sustained breach alongside a stronger dollar could deepen corrections. Meanwhile, Darkfost identified $75,000 as a major threshold, noting that failure to defend this zone could push prices down to $70,000.

Why it matters

This market correction demonstrates how digital assets remain closely tied to macroeconomic shifts and traditional financial liquidity. Changes in US employment figures and Federal Reserve interest rate expectations directly influence Treasury yields and investor risk tolerance across global markets.

For investors and market participants, the contraction in spot demand and stablecoin liquidity highlights the importance of monitoring critical technical support levels and broader financial conditions to understand future price trajectories.