Bitcoin (BTC), Ethereum (ETH), and the wider altcoin market underwent a decline following the release of better-than-expected United States employment data on June 7. Despite this, traders remain optimistic, viewing this as a brief “shakeout” before the upward trajectory 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 suggested that it appeared to be a “shakeout,” a term used when a large number of investors simultaneously sell-off due to market uncertainties.
On the same day, the U.S. Employment Situation Summary Report unveiled a higher job increase than anticipated, contrary to the predictions of crypto analysts. They had expected a weaker employment report to prompt discussions about lowering inflation, leading Bitcoin to reach new highs.
“A weaker surprise could trigger rate cuts, and with the upcoming CPI inflation report next week, if the CPI [year-on-year] is at 3.3% or lower, it could propel Bitcoin to new record levels,” stated 10x Research’s head of Research Markus Thielen on June 5.
Despite the data revealing a different trend, Thielen does not attribute the crypto market drop directly to the employment report. “Crypto saw a sell-off at the end of Friday without a clear catalyst,” as mentioned in a June 7 report seen by Cointelegraph, where the data was described as “mixed.”
Traders are closely monitoring key support levels to gauge the market’s direction. Total U.S. jobs 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 anticipate a bullish continuation shortly.”
Bitcoin saw a 1.99% decrease in the last 24 hours, falling back to $69,410. Ethereum experienced a 3.22% decline, with altcoins facing even larger losses. PEPE dropped by 10.54%, Solana decreased by 4.89%, and DOGE tumbled by 7.88%, according to CoinMarketCap data.
Bitcoin has risen by 11.06% in the past 30 days, as per CoinMarketCap.
Other traders believe the market’s peak is still ahead and view the decline as a buying opportunity. “The real bull market hasn’t even started yet,” stated the pseudonymous crypto trader Kaleo in a June 7 post.
Additionally, Jelle shared, “Bought some dips for a quick turnaround trade,” while expressing surprise at the market dip just before the weekend.
Magazine: Become a Bali crypto digital nomad like me: Here’s how.