December's US employment figures came in softer than anticipated. Private payroll additions hit just 37K versus the expected 75K, a notable miss that reflects cooling labor demand. The manufacturing sector actually contracted by 8K jobs, pointing to ongoing weakness in industrial activity—though this was slightly worse than economists predicted at -5K.

Government payrolls added 13K positions, a sharp reversal from November's 5K decline. On the participation front, the labor force participation rate dipped to 62.4%, falling short of the 65.2% forecast and slipping from 65.1% previously. These numbers paint a picture of a labor market losing momentum heading into Q1, which typically drives macro-focused traders to reassess portfolio positioning across risk assets including crypto.