Bitcoin, Ether, and the broader altcoin market faced a decline following the release of U.S. employment data on June 7, which exceeded expectations.
However, traders view this downturn as a temporary “shakeout” before the market resumes its upward trend.
“Strong sell-off into support. Alts suffered more,” pseudonymous crypto trader il Capo of Crypto shared with their 848,000 followers on X on June 7.
They described the situation as a “shakeout,” where many investors sell-off simultaneously due to market or economic uncertainty.
The U.S. Employment Situation Summary Report revealed a higher-than-expected job increase, contradicting crypto analysts’ predictions that a weaker report would pressure decisions to lower inflation, potentially pushing 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,” said Markus Thielen, head of research at 10x Research, on June 5.
Despite the surprising data, Thielen does not attribute the crypto market drop directly to the employment report.
“Crypto sold off at the end of Friday without a determining catalyst,” he stated in a June 7 report viewed by Cointelegraph, noting that the data was “mixed:”
“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.”
Traders are closely monitoring key support levels.
The U.S. added 272,000 jobs in May, while the unemployment rate increased by 0.1%, according to the U.S. Bureau of Labor Statistics.
il Capo of Crypto noted that if the key “support levels hold, we should see bullish continuation soon.”
Bitcoin fell 1.99% over the past 24 hours, dropping to $69,410.
Ether declined by 3.22%, while altcoins experienced even more significant losses: Pepe plunged 10.54%, Solana dropped 4.89%, and Dogecoin tumbled 7.88%, according to CoinMarketCap data.
Other traders suggest the market’s peak is still ahead and see the decline as a buying opportunity.
“The real bull market hasn’t even started yet,” pseudonymous crypto trader Kaleo claimed in a June 7 X post.
“Small dip just before the weekend, not what I expected but we ball anyway,” pseudonymous crypto trader Jelle wrote on the same day.
“Bought some dips for a quick turnaround trade,” added Jelle.
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