Bitcoin (BTC), Ethereum (ETH), and the wider altcoin market took a hit following the release of better-than-expected United States employment data on June 7. However, traders view this as a temporary “shakeout” before the upward trend resumes.
On June 7, pseudonymous crypto trader il Capo of Crypto shared with their 848,000 followers that there was a “strong sell-off into support,” with altcoins bearing the brunt of the impact. They noted that it “appears to be a shakeout,” a phenomenon where a large number of investors sell off simultaneously, often due to market or economic uncertainties.
The U.S. Employment Situation Summary Report released on the same day revealed a higher increase in jobs than anticipated, going against the predictions of crypto analysts who expected a weaker report to influence decisions on inflation rates and potentially lead Bitcoin to new highs.
Despite the unexpected data, Markus Thielen, head of Research at 10x Research, believes that the employment report did not directly trigger the drop in the crypto market. He stated in a report on June 7 that the sell-off on Friday lacked a specific catalyst, and that the data was “mixed.”
Traders are closely monitoring key support levels, with il Capo of Crypto emphasizing that if these levels hold, a bullish trend could resume soon.
Bitcoin saw a 1.99% decrease in the past 24 hours, falling to $69,410. Ethereum also declined by 3.22%, while altcoins like PEPE, Solana, and DOGE experienced even larger losses according to CoinMarketCap data.
Despite the recent market downturn, some traders believe that the peak is still ahead and view the decline as a buying opportunity. Pseudonymous crypto trader Kaleo stated on June 7 that the “real bull market hasn’t even started yet,” while another trader, Jelle, mentioned buying dips for quick turnaround trades.
In related news, traders are optimistic about Bitcoin ETF flows potentially leading to a “parabolic run” in BTC prices.