Cryptocurrency traders are optimistic that the recent market downturn is merely a “shakeout” and foresee a “bullish continuation” soon.
Market Reaction to U.S. Employment Data
Bitcoin, Ethereum, and the broader altcoin market experienced a significant downturn on June 7 after U.S. employment data exceeded expectations. Despite the market’s reaction, traders believe this dip is temporary.
Pseudonymous crypto trader il Capo of Crypto, addressing their 848,000 followers on X, described the event as a strong sell-off into support, particularly impacting altcoins. Il Capo added that it “looks like a shakeout,” where investors simultaneously sell-off due to market or economic uncertainty.
Employment Report’s Impact
The U.S. Employment Situation Summary Report for June revealed a higher-than-expected increase in jobs, contradicting analysts’ predictions that weaker employment data would pressure inflation and boost Bitcoin to new highs. Markus Thielen, head of Research at 10x Research, noted on June 5 that a weaker employment report might have led to rate cuts, potentially pushing Bitcoin to all-time highs if the Consumer Price Index (CPI) report showed year-on-year inflation at 3.3% or lower.
Despite the mixed data, with unemployment climbing to 4.0% and an increase in part-time jobs, Thielen believes the employment report didn’t directly cause the crypto market drop. He observed that the sell-off occurred without a clear catalyst, describing the data as “mixed.”
Traders’ Outlook on Key Support Levels
According to the U.S. Bureau of Labor Statistics, the total number of jobs in May increased by 272,000, with a slight rise in the unemployment rate. Il Capo of Crypto highlighted that if key support levels hold, a bullish continuation is likely.
In the past 24 hours, Bitcoin dropped by 1.99% to $69,410. Ethereum fell by 3.22%, and altcoins like PEPE, Solana, and DOGE suffered more significant losses, plunging by 10.54%, 4.89%, and 7.88% respectively, as reported by CoinMarketCap.
Other traders share a similar sentiment, viewing the market decline as a buying opportunity. Pseudonymous trader Kaleo expressed in a June 7 X post that “the real bull market hasn’t even started yet,” and Jelle noted, “Small dip just before the weekend, not what I expected but we ball anyway,” adding that they bought some dips for a quick turnaround trade.
