Recent US employment data released on June 7 has significantly affected the cryptocurrency market, leading to declines in Bitcoin (BTC), Ethereum (ETH), and various altcoins. The unexpected strength in employment figures triggered a market-wide downturn. However, crypto experts argue that this dip is merely a temporary disturbance before a possible continuation of the upward trend.
What Did the Employment Report Reveal?
The latest US Employment Situation Summary Report revealed an increase of 272,000 jobs in May, surpassing analysts’ projections. While many anticipated that weaker employment data would prompt interest rate cuts and drive Bitcoin to new highs, the reality has been contrary. Despite this, Markus Thielen, Head of Research at 10x Research, believes that an inflation rate of 3.3% or lower could still propel Bitcoin to record levels.
Thielen also clarified that the recent employment figures are not the sole cause of the crypto market’s downturn. He pointed out that the data was mixed, with no definitive factor causing the decline. The report also noted a rise in the unemployment rate to 4.0%, attributed to an increase in part-time workers.
Which Experts Are Weighing In?
Investors are now closely watching key technical support levels for Bitcoin. Analysts like il Capo of Crypto, who has a substantial following on social media platform X, suggest that the current sell-off indicates a temporary shake-up rather than a lasting market downturn. il Capo of Crypto noted that if Bitcoin’s price holds above the support level around $69,000, a resurgence could be imminent. Despite the market dip, many analysts see this as a strategic buying opportunity.
According to CoinMarketCap data, Bitcoin has dropped 1.99% in the last 24 hours, trading at $69,410, while Ethereum fell 3.22%. Altcoins like Pepe (PEPE), Solana (SOL), and Dogecoin (DOGE) experienced more significant losses. Analysts like Kaleo and Jelle remain optimistic, asserting that minor drops are a natural part of the market cycle and necessary for a robust recovery.
Key Takeaways for Investors
• Monitor key technical support levels for Bitcoin, especially around $69,000.
• Consider market dips as potential buying opportunities, rather than signs of long-term decline.
• Pay attention to broader economic indicators such as employment data and inflation rates.
• Follow the insights of well-regarded analysts like il Capo of Crypto, Kaleo, and Jelle for informed decision-making.
In conclusion, while the recent employment data has impacted the cryptocurrency market, experts suggest that this downturn is temporary. Investors are advised to keep an eye on support levels and remain alert to market opportunities.