Bitcoin, Ether, and the wider altcoin market saw a decline 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 informed their 848,000 followers that there was a “strong sell-off into support,” with altcoins experiencing more significant losses. They described the situation as a “shakeout,” where many investors sell off simultaneously due to market or economic uncertainty.
The U.S. Employment Situation Summary Report on the same day showed a higher-than-anticipated increase in jobs, going against predictions by crypto analysts. They had expected a weaker employment report to influence decisions to lower inflation, leading to new highs for Bitcoin.
Markus Thielen, head of Research at 10x Research, stated on June 5 that a weaker surprise in the employment report could result in rate cuts, potentially pushing Bitcoin to new all-time highs if the CPI inflation report is 3.3% or lower.
While the data indicated a different trend, Thielen did not attribute the crypto market drop directly to the employment report. He mentioned in a report on June 7 that the sell-off occurred without a specific catalyst, and the data was considered “mixed.”
Traders are closely monitoring key support levels, with il Capo of Crypto suggesting that if these levels hold, a bullish continuation is likely.
Bitcoin’s price dropped 1.99% in the past 24 hours to $69,410, with Ether declining by 3.22%. Altcoins like Pepe, Solana, and Dogecoin also saw significant losses, according to CoinMarketCap data.
Despite the market decline, some traders view it as a buying opportunity and believe that the real bull market is yet to begin. Pseudonymous traders Kaleo and Jelle expressed confidence in the market’s potential for a turnaround and growth.
In related news, traders are optimistic that Bitcoin ETF flows will lead to a “parabolic run” in its price. Additionally, becoming a Bali crypto digital nomad is seen as an appealing lifestyle choice by some in the crypto community.