Crypto Market Dips Following Robust U.S. Employment Data

Crypto Market Falls Following Strong US Employment Data

The cryptocurrency market, which includes Bitcoin (BTC), Ethereum (ETH) and various altcoins, suffered a significant setback on June 7 after US employment data beat expectations. Despite the initial decline, many traders believe this is just a “jolt” before the market continues its upward trend.

Commenting on the market movement, il Capo, a pseudonymous crypto trader il Capo of Crypto, who has 848,000 followers on X (formerly Twitter), noted: “A strong sell towards support. The bottoms suffered more.” They suggested that it “looked like a tremor”; The term was used to describe a scenario in which a large number of investors sell simultaneously, often triggered by market or economic uncertainties.

The sales coincided with the release of the U.S. Employment Situation Summary Report, which revealed a larger-than-expected increase in jobs in May. This contradicted the predictions of some crypto analysts, who predicted that weak employment data would pressure the Federal Reserve to consider lowering inflation rates, potentially pushing Bitcoin to new highs.

Markus Thielen, head of research at 10x Research, had previously speculated on June 5 that the weak 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, this would likely push Bitcoin to all-time highs. But actual employment data painted a different picture and gave mixed signals, which Thielen believes did not directly cause the decline in the crypto market.

“Crypto sold off on Friday without a decisive catalyst,” Thielen said. He explained that U.S. employment data is “mixed,” with the unemployment rate rising to 4.0% despite the increase in the number of jobs added, attributed primarily to an increase in part-time workers.

The U.S. Bureau of Labor Statistics reported an increase of 272,000 jobs in May, while the unemployment rate increased by 0.1%. This mixed data has contributed to a complex economic outlook, leading to uncertainty in the crypto market.

Despite the broader market downturn, Bitcoin has held steady over the past 24 hours, settling at $69.39. Ethereum fell slightly, falling 0.53% to $3,669. According to data from CoinMarketCap, altcoins faced even greater losses last week; Pepe fell 18%, Solana fell 3.7% and Dogecoin fell 10.7%.