Crypto Market Down Today: Bitcoin was under the control of the bears following Thursday’s small withdrawal of 0.48%. After Bitcoin’s unexpected 2.05% price drop on Friday, the once-trending top cryptocurrencies and the whole cryptocurrency market experienced a significant pullback. With Ethereum’s price falling by 3.56% and Solana’s by 4.49%, the leading altcoins are retracing to the levels of temporary support. Meme coins had been doing well recently, but top performers like PEPE, Floki, and WIF have all fallen by significant amounts—11.58%, 11.87%, and 10.49%, respectively.
Coinglass reports that $360 million in long liquidations was wiped out by the bearish swing in the cryptocurrency market overnight. At the same time, U.S. Bitcoin ETFs continue to show optimism, with a total net inflow of $130.99M daily. Of this, $168M was driven by IBIT. This represents a diminishing trend in the inflows following Tuesday’s second-biggest daily inflow of $886M, but it still marks the 19th joyous day in the USA.
U.S. Job Reports Crash Bitcoin
The price of Bitcoin experienced a decline of 2.05% during the day on June 7, from $70,771 to $69,326 by the time the day was over. This unexpected change in the cryptocurrency market leader is heavily impacted by the United States Department of Labor’s data on the number of jobs created during May, released yesterday.
In a report, the United States Department of Labor highlights the addition of 272,000 jobs over the previous month. Compared to the data from last month, which showed that were 165,000 jobs available, this amount is significantly more than the projected number of 185,000 positions. In addition, the superpower experienced a surge in the unemployment rate, reaching its highest point of 4% and reaching the levels seen in January 2022.
Real Jobs Report Impact on Crypto
The Crypto Market Down Today, the market responds rapidly as profit bookings begin responding to the increasing unemployment rate. However, why is that? Unemployment may rise, but that won’t stop the Federal Reserve from keeping interest rates low for the foreseeable future. Maybe it’s because other indicators, like job growth, show that the economy is doing well. So, inflation might worsen, which is already problematic if the Fed chooses to lower rates too quickly.
How, then did the market decline? Put another way, the employment report makes it less likely that the U.S. Fed will lower rates. The market expected the Federal Open Market Committee (FOMC) to lower interest rates at their meeting on June 12. A rate cut is unnecessary for the cryptocurrency Sector. If rates are dropped, the market will see more demand, liquidity will increase, and borrowing prices will go down. So, rate cuts are the next big thing that will start a bull market and make Bitcoin and altcoin prices skyrocket.
Will Bitcoin Maintain Growth?
Bitcoin is trading slowly at $69,343 after falling below the $70,000 mark overnight. In the early Asian hours, there was no significant movement, and a Doji candle sought support. The Doji is trying to grab support at the 23.60% trend-based Fibonacci level, as seen in the 1D chart. But yesterday night’s bearish engulfing candle, which completed an evening star, is seen in the market movement of the Crypto Market Down Today.
Another indicator of an ample supply at this psychological level is the consistent rejection of offers at and over $70,000. Assuming the daily RSI remains above the halfway level, dynamic support might be on the horizon from the uptrending 50D EMA. Accordingly, the overnight decline was probably just a fear-of-missing-out (FUD) reaction to the employment report. If this effort is successful, the cryptocurrency price might recover to $71,000 by the FOMC meeting on June 12. The likelihood of a significant Bitcoin price movement on the day of the FOMC meeting is high due to the recent hawkish data.
