Bitcoin was under the control of the bears following a minor withdrawal of 0.48% on Thursday. The unexpected 2.05% decrease in the Friday Bitcoin price made the most popular cryptocurrencies the whole cryptocurrency market drastically pull back. As Ethereum experienced a 3.56% and Solana a 4.49% drop in their prices, the main altcoins are making their way to the lower supports. While some of the meme coins were the ones enjoying their time, the best among them clearly fell along the line. PEPE (11.58%), Floki (11.87%), and WIF (10.49%).
Coinglass notified that the $360 million bull market long positions in the crypto space were swept away by the vortex of the overnight bearish swing. Meanwhile, the U.S. Bitcoin ETFs are still soaring with an addition of $130.99 million to the total net inflow per day. Out of this, the sum of $168M was contributed by IBIT. Albeit a waning trend in the inflows after the Tuesday inflow of $886M, the second-biggest they had ever seen, it is still the 19th day that marks the joy of the USA.
U.S. Job Reports Crash Bitcoin
The price of Bitcoin declined 2.05% on June 7, from $70,771 to $69,326 by the end of the day. This unexpected change in the cryptocurrency market leader was heavily impacted by the United States Department of Labor’s data on the number of jobs created during May, which was 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.
Also Read: Daily Market Review: BTC, ETH, NOT, JASMY, ORDI
FAQS
How did the U.S. job report affect the cryptocurrency market?
The U.S. job report, which showed stronger job growth and a higher unemployment rate, impacted the cryptocurrency market by reducing the likelihood of an imminent interest rate cut by the Federal Reserve. This led to a market-wide decline, affecting Bitcoin and major altcoins like Ethereum and Solana.
What role do U.S. Bitcoin ETFs play in the current market?
U.S. Bitcoin ETFs continue to attract significant investment, with a daily net inflow addition of around $130.99 million. This sustained interest from ETFs has added some stability and bullish momentum to Bitcoin, despite recent bearish market trends.
Why is an interest rate cut important for Bitcoin and altcoin prices?
A potential rate cut by the Federal Reserve could lead to increased demand and liquidity in the market, as lower borrowing costs encourage more investments. This could spark a bull market in cryptocurrency, potentially boosting the prices of Bitcoin and other altcoins.
What are the current technical indicators suggesting for Bitcoin’s price?
Bitcoin is trading close to a key support level around $69,343, with indicators like the Doji candle and 50-day EMA suggesting potential for dynamic support. The RSI level above the midpoint hints at possible stabilization or recovery, potentially reaching $71,000 if bullish sentiment strengthens before the FOMC meeting on June 12.
