Crypto Market Falls After Strong US Employment Data

Crypto Market Falls After Strong US Employment Data

Crypto Market Falls After Strong US Employment Data

The cryptocurrency market, including Bitcoin (BTC), Ethereum (ETH) and various altcoins, suffered a significant drop on June 7 after US employment data beat expectations. Despite the initial drop, many traders believe this is just a “flush” before the market resumes its upward trajectory.

Crypto trader pseudonym il Capo of Crypto, who has 848,000 followers on X (formerly Twitter), commented on the market’s move, noting, “Strong selling at support. Alts suffered the most.” They suggested that this “looks like a shock,” a term used to describe a scenario where a large number of investors sell simultaneously, often triggered by market or economic uncertainties.

The sell-off coincided with the release of the US Summary Employment Report, which revealed a higher-than-expected increase in jobs for May. This contradicted the predictions of some crypto analysts, who had predicted that the weaker employment data would pressure the Federal Reserve to consider lowering inflation rates, potentially sending Bitcoin to new highs.

Markus Thielen, head of research at 10x Research, had previously speculated on June 5 that a weaker employment report could lead to rate cuts. He suggested that if the Consumer Price Index (CPI) for the year-over-year rate was 3.3% or lower, it would likely push Bitcoin to all-time highs. However, current employment data painted a different picture, showing mixed signals that Thielen believes did not directly cause the crypto market to fall.

“Crypto sold off late Friday without a defining catalyst,” Thielen said. He explained that the US employment data was “mixed”, with the unemployment rate climbing to 4.0% despite an increase in the number of jobs added, which was mainly attributed to an increase in part-time workers. partial.

The US Bureau of Labor Statistics reported an increase of 272,000 jobs in May, while the unemployment rate rose 0.1%. These mixed data contributed to a complex economic outlook, leading to uncertainty in the crypto market.

Despite the broader market decline, Bitcoin remained flat over the past 24 hours, settling at $69.39. Ethereum fell slightly, falling 0.53% to $3,669. Over the past week, altcoins faced even bigger losses, with Pepe down 18%, Solana down 3.7%, and Dogecoin down 10.7%, according to data from CoinMarketCap.

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Image Source : finance.yahoo.com

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