Bitcoin, Ether and the broader altcoin market experienced a downturn after United States employment data exceeded expectations on June 7. However, traders believe it’s a brief “shakeout” before the upward trend continues.
“Strong sell-off into support. Alts suffered more,” pseudonymous crypto trader il Capo of Crypto declared to their 848,000 X followers on June 7. They added that it “looks like a shakeout,” which is when a large number of investors sell-off at the same time, usually due to market or economic uncertainty.
On the same day, the U.S. Employment Situation Summary Report revealed a higher-than-expected increase in jobs, contradicting crypto analysts’ predictions that a weaker employment report would put pressure on the decision to lower inflation, and Bitcoin (BTC) would hit new highs as a result.
“A weaker surprise could bring back rate cuts, and next week, we will get the CPI inflation report. If CPI [year-on-year] is 3.3% or lower, it will likely push Bitcoin to new all-time highs,” 10x Research head of Research Markus Thielen stated on June 5.
Although the data is showing a different trend, Thielen doesn’t believe the employment report directly caused the crypto market drop. “Crypto sold off at the end of Friday without a determining catalyst,” he stated in a June 7 report viewed by Cointelegraph, while claiming that the data was “mixed:”
“US employment data was mixed, with the unemployment rate climbing to 4.0% but an upside surprise in the number of jobs added. This was entirely due to an increase in part-time workers."
Traders are watching key support levels closely
Total jobs in the U.S. increased by 272,000 jobs in May, while the unemployment rate increased by 0.1%, according to the U.S. Bureau of Labor Statistics.
il Capo of Crypto explained if the key “support levels hold, we should see bullish continuation soon.”
Bitcoin fell 1.99% over the past 24 hours, dropping back down to $69,410. Ether (ETH) declined by 3.22%, while altcoins suffered even more significant losses; Pepe (PEPE) plunged 10.54%, Solana’s (SOL) dropped 4.89%, and Dogecoin (DOGE) tumbled 7.88%, according to CoinMarketCap data.
Other traders also commented that the market’s peak is far off and suggested looking at the market decline as a buying opportunity.
“The real bull market hasn’t even started yet,” pseudonymous crypto trader Kaleo claimed in a June 7 X post.
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“Small dip just before the weekend, not what I expected but we ball anyway.” pseudonymous crypto trader Jelle wrote on the same day.
“Bought some dips for a quick turnaround trade,” added Jelle.
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