Bitcoin experienced a sudden drop in value on June 7 as the U.S. payrolls data took the market by surprise. The price of BTC plummeted by $1,300 in just one hour before bouncing back.
The unexpected U.S. nonfarm payrolls data suggested that the labor market was handling tight fiscal policies better than anticipated. This led to speculation that the Federal Reserve would not lower interest rates, which is crucial for injecting liquidity into risky assets like cryptocurrencies.
Economist Mohamed El-Erian stated that the data ruled out a rate cut in July, according to Bloomberg. This news influenced the Federal Open Market Committee (FOMC) meeting scheduled for June 12, with little chance of a rate cut expected over the next few meetings.
The probability of a 0.25% decrease in interest rates was only 0.6%, 8.8%, and 50.8% for the June, July, and September FOMC meetings, respectively, at the time of writing, as shown by CME Group’s FedWatch Tool.
Despite the strong payrolls data, the unemployment rate in the U.S. unexpectedly rose to 4%, causing confusion among analysts. Commentator Holger Zschaepitz described the U.S. labor market as “schizophrenic” in a post.
In terms of BTC price action, the market remained subdued as volatility settled. Traders observed that BTC/USD was still below key resistance levels and that spot bidders were needed to drive the uptrend.
BTC price was stuck in a tight range, with resistance at $72,600 becoming a focal point. Market participants noted the consolidation between support at $67,000 and resistance at $72,000.
Charts indicated a sideways trading pattern for BTC/USD, with alternating higher highs and lower lows. It is important to note that this article does not provide investment advice, and readers should conduct their own research before making any financial decisions.