Cryptocurrencies, Stocks Sink After Strong US Jobs Data, PMI Fuel Tax Hike Fears

(Kitco News) – Crypto prices pared some of their recent gains in Thursday trading as the threat of rising interest rates returned to investors’ radar following a better-than-expected unemployment report from the Department of Labor from the USA.

The S&P Global Purchasing Managers Index (PMI) for May also increased pressure on the markets, which stood at 54.4 against 51.3 last month. The higher-than-expected reading showed that business activity accelerated at the fastest pace in two years despite the Fed’s efforts to contain price pressures.

After starting in the green, stock prices fell into the red following the report and remained underwater throughout the day, with the S&P, Dow and Nasdaq closing down 0.74%, 1.53% and 0.39% , respectively.

Data provided by TradingView shows that after rising to $70,000 support in Thursday morning trading, Bitcoin (Bitcoin) moved down several levels on the elevator, reaching a low of $66,280 before being pushed above $66,700.

BTC/USD Chart by TradingView

At the time of writing, BTC is trading at $66,745, down 2.45% on the 24-hour chart.

Analysts warn about reaction to the approval of the Ether ETF

One of the main sources of momentum for Bitcoin and the crypto market in recent weeks has been speculation about the approval of the first Ethereum spot (ETH) exchange-traded funds in the U.S. According to ETF analysts at Bloomberg Intelligence, the odds of approval jumped from 25% to 75% on Monday based on requests to update their applications that the Securities and Exchange Commission sent to issuers .

The development helped spark a rally in the crypto market that saw the price of Ether rise 24% to $3,900, but sentiment has since moderated as it could still be months before an Ether ETF begins trading, even if approved on Thursday.

Amid Thursday afternoon’s plunge for Bitcoin and the broader crypto market, market analyst Skew said it’s “no surprise to see a pullback on such a huge event that also lifted the market in anticipation.”

He said “the current area is super important, but flows will be quite erratic as big events provide more volatility” and suggested traders keep an eye on “the weekly open at $66,247, the previous 4H supply zone ( current price)”, a look for a “reaction [from the market] this proves a recovery.

Skew added that the 4-hour and 1-day exponential moving averages show support is around $65,000.

Crypto Tony he said that $67,300 is the “level for bulls to hold this week,” before adding that the option to continue holding remains good as long as it stays above $64,500.

Market analyst Rekt Capital said Bitcoin is “just consolidating within its reaccumulation range” and observed that Thursday’s price action was just a “high resistance band rejection.”

“Historically, Bitcoin has never been ready to break out of a reaccumulation range right after halving,” he said.

And for those wondering when Bitcoin might reach its next peak, technical analyst Yoddha said historical performance suggests “BTC will top in the next 300 days.”

Altcoins slide into the red

Most altcoins in the top 200 fell in Thursday’s trading, with around 30 tokens posting gains while the rest posted losses.

Daily cryptocurrency market performance. Source: Coin360

ConstitutionDAO led the field for a second day with a 26.4% gain, followed by a 20.1% rise for ether.fi (ETHFI) and a 7.7% gain for Manta Network (MANTA). Arkham (ARKM) was the biggest loser, falling 12.5%, while Axelar (AXL) fell 11.6% and Echelon Prime (PRIME) lost 11.1%.

The total cryptocurrency market value is now $2.51 trillion and Bitcoin’s dominance rate is 52.9%.

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