Bitcoin (BTC), Ethereum (ETH), along with the wider altcoin market, saw a decline following the release of better-than-expected United States employment data on June 7. Nevertheless, traders are optimistic that this is just a minor setback before the upward trend resumes.
“Strong sell-off with altcoins taking a bigger hit,” noted the pseudonymous crypto trader il Capo of Crypto, addressing their 848,000 followers on June 7. They suggested that it appears to be a “shakeout,” a phenomenon where a large number of investors sell off simultaneously, often due to market or economic uncertainty.
On the same day, the U.S. Employment Situation Summary Report showed a significant increase in jobs, contrary to the predictions of crypto analysts who anticipated that a weaker employment report would prompt a decision to lower inflation, leading Bitcoin to reach new highs.
“A weaker surprise might result in rate cuts, and with the CPI inflation report coming next week, if the CPI [year-on-year] is 3.3% or lower, we could see Bitcoin reaching new record highs,” stated Markus Thielen, Head of Research at 10x Research on June 5.
Even though the data is pointing in a different direction, Thielen does not believe that the employment report directly triggered the drop in the crypto market. “Crypto experienced a sell-off at the end of Friday without a clear catalyst,” as stated in a report by Thielen on June 7, adding that the data was “mixed.”
Traders are closely monitoring key support levels to gauge the situation. Total jobs in the U.S. increased by 272,000 in May, while the unemployment rate rose by 0.1%, according to the U.S. Bureau of Labor Statistics.
il Capo of Crypto explained that if the crucial “support levels hold, we should witness a bullish continuation soon.”
Over the last 24 hours, Bitcoin saw a 1.99% decline to $69,410, while Ethereum dropped by 3.22%. Altcoins suffered even larger losses, with PEPE plummeting by 10.54%, Solana decreasing by 4.89%, and DOGE tumbling by 7.88%, based on CoinMarketCap data.
Bitcoin has risen by 11.06% in the past 30 days, according to CoinMarketCap.
Various traders have indicated that the market’s peak is still far off and view the decline as an opportunity to buy.
“The real bull market hasn’t even started yet,” claimed the pseudonymous crypto trader Kaleo in a post on June 7.
“Some small dips before the weekend, not what I expected, but we keep moving forward,” mentioned pseudonymous crypto trader Jelle on the same day.
“I bought some dips for a quick turnaround trade,” added Jelle.
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