Bitcoin, Ether, and the broader altcoin market faced a downturn following the release of U.S. employment data on June 7, which exceeded expectations. Despite this, traders remain optimistic, viewing the dip as a temporary “shakeout” before the market resumes its upward trend.
“Strong sell-off into support. Alts suffered more,” noted pseudonymous crypto trader il Capo of Crypto to their 848,000 followers on X. They characterized the market reaction as a “shakeout,” a scenario where a large number of investors sell off simultaneously, often due to market or economic uncertainties.
The U.S. Employment Situation Summary Report revealed a higher-than-expected increase in jobs, contradicting analysts’ predictions that a weaker employment report would ease inflation concerns and drive Bitcoin to new highs.
“A weaker surprise could bring back rate cuts, and next week, we will get the CPI inflation report. If CPI [year-on-year] is 3.3% or lower, it will likely push Bitcoin to new all-time highs,” commented Markus Thielen, head of research at 10x Research, on June 5.
Despite the data pointing in a different direction, Thielen does not attribute the crypto market drop solely to the employment report. “Crypto sold off at the end of Friday without a determining catalyst,” he noted in a June 7 report viewed by Cointelegraph, highlighting the mixed nature of the data:
“US employment data was mixed, with the unemployment rate climbing to 4.0% but an upside surprise in the number of jobs added. This was entirely due to an increase in part-time workers.”
As the market digests the latest employment figures, traders and analysts continue to monitor upcoming economic reports, such as the Consumer Price Index (CPI), for further insights into the market’s trajectory.
