Bitcoin, Ether, and the wider altcoin market took a hit following the release of better-than-expected United States employment data on June 7. Despite this, traders remain optimistic, viewing this as a temporary setback before the upward trend resumes.
“Strong sell-off into support. Alts suffered more,” shared the pseudonymous crypto trader il Capo of Crypto with their 848,000 followers on June 7. They described the situation as a “shakeout,” a phenomenon where a large number of investors sell off simultaneously, often due to market or economic uncertainty.
The U.S. Employment Situation Summary Report on the same day revealed a surprising increase in jobs, going against the predictions of crypto analysts who anticipated a weaker employment report to lead to a decision to lower inflation and subsequently push Bitcoin (BTC) 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,” stated Markus Thielen, the Head of Research at 10x Research, on June 5.
While the data presents a different narrative, Thielen doesn’t attribute the drop in the crypto market directly to the employment report. “Crypto sold off at the end of Friday without a determining catalyst,” he mentioned in a June 7 report seen by Cointelegraph, highlighting that the data was “mixed.”
Traders are now closely monitoring key support levels in the market. Despite an increase of 272,000 jobs in the U.S. in May and a slight rise in the unemployment rate according to the U.S. Bureau of Labor Statistics, il Capo of Crypto remains optimistic that if the key support levels hold, a bullish continuation can be expected soon.
Bitcoin saw a 1.99% decline in the past 24 hours, falling back to $69,410. Ether (ETH) dropped by 3.22%, while altcoins like Pepe (PEPE), Solana (SOL), and Dogecoin (DOGE) experienced even greater losses, as per CoinMarketCap data.
Other traders echoed a positive sentiment, viewing the market decline as a buying opportunity. “The real bull market hasn’t even started yet,” claimed the pseudonymous crypto trader Kaleo in a June 7 post.
Overall, despite the recent dip, traders remain hopeful for a rebound in the market soon.