The crypto markets experienced a selloff on June 7th after the U.S. employment data exceeded expectations, with Bitcoin dropping nearly 2% and Ethereum falling over 3%. However, many traders view this as simply a temporary “shakeout” before the broader uptrend continues.
The catalyst was the U.S. Employment Situation Summary showing 272,000 new jobs added in May, contradicting predictions that a weaker report could force the Fed to ease inflation-fighting measures and be bullish for crypto prices.
“A weaker surprise could bring back rate cuts, and Bitcoin would likely hit new all-time highs,” said Markus Thielen, Head of Research at 10x Research, just days before the data release.
While Thielen doesn’t think the jobs numbers directly caused the crypto dip, the data paints a mixed picture according to his analysis: “The unemployment rate climbed to 4.0% but there was an upside surprise in jobs added, entirely due to an increase in part-time workers.”
The downturn hit altcoins particularly hard, with Pepe plunging over 10%, Solana down almost 5%, and Dogecoin tumbling nearly 8%. But many traders remain bullish long-term.
“Strong sell-off into support. Looks like a shakeout,” tweeted popular crypto analyst il Capo of Crypto, added
While an unwelcome jolt, the overriding sentiment is that this is simply a minor speed bump on crypto’s road to wider adoption and higher prices in the coming months. The market’s ability to rebound from this dip will provide a key test for the bull case.
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