Amidst the cryptocurrency market’s volatility, Bitcoin (BTC), Ethereum (ETH), and various altcoins faced a significant downturn on June 7 following the release of better-than-expected U.S. employment data. Traders, however, view this as a temporary setback before the market resumes its upward trend.
Pseudonymous crypto trader il Capo of Crypto, with a substantial following on social media, observed the market’s reaction, highlighting a “strong sell-off into support,” particularly affecting altcoins. Describing the situation as a “shakeout,” il Capo suggested that the sell-off was a collective response to market uncertainties.
The downturn coincided with the publication of the U.S. Employment Situation Summary Report, which revealed a surprising increase in jobs for May, contrary to some crypto analysts’ predictions. Markus Thielen, head of research at 10x Research, had speculated earlier that weaker employment data could prompt rate cuts, potentially boosting Bitcoin prices. However, the actual data presented a mixed picture, leading to market volatility.
Thielen emphasized the complexity of the economic landscape, citing the unemployment rate’s rise to 4.0% alongside an increase in job numbers, mainly driven by part-time employment. This ambiguity contributed to uncertainty in the crypto market.
Despite the market downturn, Bitcoin maintained stability, while Ethereum experienced a slight decline. Altcoins, however, faced more significant losses over the week, with Pepe, Solana, and Dogecoin experiencing notable drops, according to CoinMarketCap data.
As traders navigate this volatile period, the impact of economic indicators like U.S. employment data continues to shape cryptocurrency market trends, influencing investor sentiment and asset valuations.