Markets
Crypto Market Falls Following Robust US Jobs Data
Crypto Market Falls Following Robust US Jobs Data
The cryptocurrency market, including Bitcoin (BTC), Ethereum (ETH), and various altcoins, saw a significant slowdown on June 7 after U.S. employment data beat expectations. Despite the initial decline, many traders believe this is simply a “shuffle” before the market resumes its upward trajectory.
Pseudonymous crypto trader il Capo de Crypto, who has 848,000 followers on The Alts suffered more.” They suggested it “looks like a shakeout,” a term used to describe a scenario in which a large number of investors sell simultaneously, often triggered by market or economic uncertainties.
This wave of selling coincided with the release of the US Employment Situation Summary Report, which revealed a higher-than-expected increase in jobs for the month of May. This contradicts the predictions of some crypto analysts who predicted that weaker employment data would push the Federal Reserve to consider reducing inflation rates, which could drive Bitcoin to new highs.
Markus Thielen, head of research at 10x Research, speculated on June 5 that a weaker jobs report could lead to rate cuts. He suggested that if the Consumer Price Index (CPI) for the annual rate was 3.3% or lower, it would likely push Bitcoin to all-time highs. However, actual employment data paints a different picture, showing mixed signals that Thielen believes did not directly cause the crypto market’s fall.
“Crypto sold off late Friday without a defining catalyst,” Thielen said. He said US employment data was “mixed”, with the unemployment rate climbing to 4.0% despite an increase in the number of jobs created, mainly attributed to an increase in the number of part-time workers. partial.
The U.S. Bureau of Labor Statistics reported an increase of 272,000 jobs in May, while the unemployment rate edged up 0.1%. This mixed data has contributed to a complex economic outlook, leading to uncertainty in the crypto market.
Despite the general market slowdown, Bitcoin remained stable over the last 24 hours, settling at $69.39. Ethereum declined slightly, falling 0.53% to $3,669. Over the past week, altcoins have suffered even greater losses, with Pepe plunging by 18%, Solana down 3.7%, and Dogecoin plummeting 10.7%, according to data from CoinMarketCap.