Markets
Crypto Market Falls After Robust US Jobs Data
Crypto Market Falls After Robust US Jobs Data
The cryptocurrency market, including Bitcoin (BTC), Ethereum (ETH), and several altcoins, experienced a significant downturn on June 7 after US employment data surpassed expectations. Despite the initial drop, many traders believe that this is just a “shock” before the market resumes its upward trajectory.
Pseudonymous crypto trader il Capo of Crypto, who has 848,000 followers on X (formerly Twitter), commented on the market movement, noting: “Strong selling in support. Alts suffered more.” They suggested this “looks like a shakeout,” a term used to describe a scenario in which a large number of investors sell simultaneously, often triggered by economic or market uncertainty.
The sell-off coincided with the release of the U.S. Employment Situation Summary Report, which revealed a higher-than-expected employment increase in May. This contradicts predictions from some crypto analysts who predicted that weaker employment data would pressure the Federal Reserve to consider reducing inflation rates, potentially driving Bitcoin to new highs.
Markus Thielen, head of research at 10x Research, had already 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 less, it would likely drive Bitcoin to all-time highs. However, actual employment data painted a different picture, showing mixed signals that Thielen believes did not directly cause the crypto market’s crash.
“Crypto sold off late Friday without a driving catalyst,” Thielen stated. He explained that employment data in the US was “mixed”, with the unemployment rate rising to 4.0% despite an increase in the number of jobs created, which was mainly attributed to the 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 rose 0.1%. This mixed data contributed to a complex economic outlook, leading to uncertainty in the crypto market.
Despite the broader market downturn, Bitcoin remained stable over the last 24 hours, settling at ₹69.39. Ethereum decreased slightly, falling 0.53% to $3,669. Last week, altcoins faced even steeper losses, with Pepê falling 18%, Solana falling 3.7%, and Dogecoin falling 10.7%, according to data from CoinMarketCap.