Ethereum and Bitcoin slide on Fed rate fears

Over the past 24 hours, Bitcoin has fallen by roughly 7%, briefly dipping to $85,150 and hitting a nearly seven‑month low. The second‑largest asset by market cap, Ethereum, is also under pressure: in the past day its price has dropped by more than 8% and at some points traded below $2,750. The leading cryptocurrency now trades more than 30% below its all‑time high near $126,000 set in October, while Ethereum is down more than 25% from its peak levels.

The crypto fear and greed index remains in the “extreme fear” zone, and total market capitalization has shrunk by more than 6% over the last 24 hours.

The sell‑off was triggered by the September U.S. jobs report, whose release was delayed due to a prolonged federal government shutdown. The report showed a weaker‑than‑expected labor market, which traders took as a signal that inflation risks remain elevated and that rate cuts could be put on hold.

Earlier, the Bureau of Labor Statistics had already warned that the usual October jobs report would not be published at all: during the 43‑day shutdown the agency managed to collect only payroll data from employers and was unable to conduct its household survey. As a result, the Fed is missing a key piece of the labor‑market puzzle just ahead of its December 9–10 meeting, where officials will discuss the path of interest rates.

Investors now have to rely on a limited set of indicators and market‑based expectations for monetary policy. Exchange data shows the odds of a Fed rate cut in December remain below 50%, and many analysts doubt that a token move of 25 basis points would be enough to reverse the overall trend in financial markets.

As long as policymakers stick to a cautious stance, the crypto market stays at the mercy of rates. Short‑term bounces are possible, but a sustained recovery would require clearly softer signals from the Fed and an influx of fresh capital.