U.S. labor market data shows mixed results, with unemployment rising to a four-year high, and U.S. stocks generally weak. The crypto market has slightly recovered, with total market capitalization up 1.51% to $2.98 trillion. However, the Fear and Greed Index remains low at 22, and the Altcoin Season Index has dropped to 18, falling into the lowest range. Bitcoin (BTC) slowly rebounded to 87K after dipping to 85K on Monday, while Ethereum (ETH) remains below $3,000. The market is awaiting the Bank of Japan's (BOJ) interest rate decision on Friday.

Labor Market Data Shows Mixed Results, Unemployment Rises to Four-Year High

Data from the U.S. Bureau of Labor Statistics shows that non-farm payrolls increased by 64,000 in November, reversing the 105,000 decline in October. However, the unemployment rate rose to 4.6%, reaching a four-year high, with many unemployed Americans struggling to find new jobs.

October retail sales showed little change, as strong spending in several categories was offset by a decline in expenditures at auto dealers, which restrained overall sales growth.

Traders have not increased bets on near-term Fed rate cuts. Due to delays in recent data, the Fed may wait for more data before making further assessments. According to the CME FedWatch Tool, traders generally expect the Fed to keep rates unchanged in the near term, but anticipate two rate cuts next year, one more than indicated in the last dot plot.

Bitcoin Slowly Recovers to $87K; Altcoins Remain Sluggish

The crypto market has seen a minor recovery, with total market capitalization rising 1.51% to $2.98 trillion. The Fear & Greed Index is still hovering at a low 22, and the Altcoin Season Index has fallen further to 18, entering a zone of extreme inactivity.

Bitcoin has slowly climbed back to $87K after falling to $85K on Monday, while Ethereum (ETH) remains below $3,000. ETF flows on December 15th continued to show a net outflow.

The Bank of Japan is set to hold its policy meeting from December 18–19. The market widely expects the BOJ to raise rates by 25 basis points (one quarter-point) to 0.75%, pushing the benchmark rate to a 20-year high. With the U.S. having already cut rates by 25 basis points this month, the narrowing interest rate spread between the U.S. and Japan poses a risk of unwinding the yen carry trade. This could potentially cause high-risk assets like Bitcoin to take the first hit. Additionally, with the upcoming year-end holidays in Europe and the U.S., liquidity is thinner, and the market appears to be adopting a more conservative and cautious stance.

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