Bitcoin News Today: Fed's Policy Uncertainty and Data Black Hole Trigger Crypto Collapse

Bitcoin plunged below $86,000 in late November 2025 as U.S. jobs data delays and shifting Federal Reserve policy expectations triggered a sharp sell-off in crypto markets. The Bureau of Labor Statistics (BLS) announced it would not release October employment figures and would delay the November report until after the Fed's December policy meeting, eroding a key data point for monetary policymakers. Traders slashed the probability of a December rate cut to 33% from near certainty just weeks earlier, sending shockwaves through risk assets. Bitcoin, which had peaked at $110,000 in early October, fell to $89,000 by late November, while Ethereum and other major cryptocurrencies lost 5-12% in 24 hours.

The Fed's uncertainty over rate cuts has been compounded by internal divisions, with officials like Governor Christopher Waller cautiously advocating for cuts but Vice Chair Philip Jefferson urging restraint. This ambiguity has created a "data black hole" for markets, with investors left to navigate a fragmented economic picture. "The crypto market is consolidating" said Edul Patel, CEO of Mudrex, noting that the absence of October jobs data and a potential Bitcoin whale selling 11,000 BTC exacerbated downward pressure.

The sell-off extended beyond crypto, with U.S. equities and tech stocks also reeling. The S&P 500 hovered near flat territory as Nvidia's upcoming earnings report heightened market jitters. Meanwhile, forced liquidations in crypto futures markets reached $443 million in a single day, with $10 million in losses concentrated on Bybit's BTCUSD pair. Stablecoin issuer Circle (CRCL) saw shares drop 10% on Wednesday alone, erasing nearly half its value since late October.

Policy uncertainty is further amplified by fiscal developments. A $54 billion fiscal acceleration from post-shutdown government spending is expected in November, temporarily boosting liquidity but unlikely to offset broader monetary tightening pressures. Meanwhile, the Trump administration's tax-cut bill, projected to add 0.4% to GDP growth in early 2026, faces headwinds as higher interest rates dampen its economic impact.

Markets are now bracing for the next wave of inflation data and manufacturing PMI readings, which could provide clarity on the Fed's path. However, with the central bank's policy outlook in flux and crypto markets hyper-sensitive to rate expectations, volatility is expected to persist.