Crypto Markets Slide as U.S. Government Shutdown Delays Key Jobs Data
By [Your Name] – February 3 2026
Market recap
On Tuesday, the cryptocurrency market retreated across the board after a partial shutdown of the United States government postponed the release of the January employment report and other core macro‑economic indicators.
- Bitcoin (BTC) slipped to roughly $77,700, a decline of about 1.5 % in the past 24 hours.
- Ethereum (ETH) fell sharper, losing ≈4 % to trade near $2,290.
- Other major assets also posted losses: Binance Coin (BNB) down ≈1 % to $771, XRP off 2.5 Solana (SOL) down 3.5 % to $101, and the overall crypto market cap shrank to $2.7 trillion, roughly 1.5 %** lower than the previous day.
24‑hour on‑chain trading volume hovered around $136 billion, indicating that liquidity remained robust despite the downturn.
Token‑specific moves
While most large‑cap tokens retreated, a handful of niche assets bucked the trend:
- Hyperliquid (HYPE) rallied more than 5 %.
- LEO Token (LEO) gained about 4 %, and MemeCore (M) added roughly 3 %.
Tokenized precious‑metal products showed notable demand. Tether Gold (XAUT) rose 5.2 %, and PAX Gold (PAXG) advanced 4.8 %, underscoring continued investor interest in digital representations of gold.
Conversely, privacy‑focused coins suffered steep declines: Monero (XMR) fell 8.7 %, Zcash (ZEC) dropped 8.4 %, and Internet Computer (ICP) slipped 4.8 %.
Liquidations and ETF flows
Leveraged positions were heavily impacted. According to data aggregator CoinGlass, approximately $266 million in margin contracts were liquidated in the last 24 hours, split between $155 million in long‑side and $110 million in short‑side liquidations.
- Ethereum accounted for the largest share of liquidations (≈$84 million), followed by Bitcoin (≈$58 million).
- Over 101,000 traders saw their positions closed out.
ETF activity was mixed:
- U.S. spot Bitcoin ETFs attracted net inflows of roughly $562 million on February 2.
- Spot Ether ETFs recorded a modest net outflow of $2.9 million.
- XRP spot ETFs posted a small net outflow of about $0.4 million, while Solana ETFs enjoyed $5.6 million in daily inflows, pushing cumulative net inflows for the asset to around $877 million.
Macro backdrop – government shutdown and Fed nomination
The Bureau of Labor Statistics announced that the January employment report, along with several other key data releases, will be delayed because of the ongoing partial government shutdown that began over the weekend. The suspension of these releases removed a crucial market signal, prompting a “sudden tightening in risk appetite” across multiple asset classes, according to Tesseract analyst James Harris.
Lawmakers are expected to vote later today on a funding package—backed by former President Donald Trump—that would reopen the government and fund most federal agencies through October. The measure has already cleared the Senate but faces uncertain prospects in the House, where both Democrats and a faction of hard‑line Republicans are anticipated to resist.
At the same time, the market is digesting the recent nomination of Kevin Warsh to chair the Federal Reserve. Harris noted that investors interpret Warsh’s potential leadership as a signal of a “less supportive liquidity backdrop,” adding further pressure to risk‑sensitive assets such as cryptocurrencies.
Analysis
The confluence of delayed macro data and heightened political uncertainty has reignited short‑term risk aversion among crypto investors. Bitcoin’s modest decline reflects its status as a relatively stable store of value, while Ethereum’s sharper fall suggests that markets are pricing in a broader repricing of riskier, higher‑growth assets.
The elevated liquidation volume—particularly on ETH—indicates that leveraged traders were caught off‑guard by the rapid shift in sentiment. Meanwhile, the divergence in ETF flows demonstrates a nuanced investor view: capital continues to flow into Bitcoin as a hedge, whereas Ether and other altcoins face outflows traders seek to reduce exposure.
Tokenized gold’s outperformance signals that investors may be turning to digital precious‑metal products for a safe‑haven allocation within the crypto ecosystem.
Key takeaways
- Risk appetite contraction driven by the U.S. government shutdown delayed jobs data and prompted a sell‑off across major cryptocurrencies.
- Bitcoin held a relatively modest loss (‑1.5 %); Ethereum led the decline (‑4 %) and recorded the highest liquidation amount.
- Leveraged positions saw over $266 million liquidated, affecting more than 100 k traders.
- ETF activity remained mixed: strong inflows into Bitcoin spot ETFs versus modest outflows from Ether and XRP products.
- Tokenized gold assets outperformed, indicating continued demand for on‑chain precious‑metal exposure.
- Political developments: a potential bipartisan funding deal could end the shutdown, but House opposition may delay resolution.
- Federal Reserve nomination of Kevin Warsh is being viewed as a possible pivot toward tighter monetary conditions, adding the bearish tilt in risk‑sensitive markets.
Investors should monitor the outcome of the funding vote and any forthcoming guidance from the Federal Reserve, as both will likely shape the risk environment for cryptocurrencies in the weeks ahead.
Source: https://thedefiant.io/news/markets/crypto-markets-slide-as-government-shutdown-delays-jobs-report
