Bitcoin and Altcoins Experience Major Pullback After U.S. Job Reports Crash
The cryptocurrency market experienced a major pullback last night as Bitcoin, Ethereum, and other top altcoins took a hit. Following a sudden crash in Bitcoin price by 2.05% on Friday, the entire crypto market turned bearish, wiping away $360 million in long liquidations.
The top altcoins, including Ethereum and Solana, retraced to the nearest support levels, with meme coins like PEPE, Floki, and WIF crashing by double digits. The U.S. Bitcoin ETFs, however, maintained a positive outlook with a daily total net inflow of $130.99M, signaling investor confidence despite the market downturn.
The main catalyst for the overnight bearish turnaround was the U.S. May Jobs report, which showed an addition of 272,000 jobs last month, surpassing expectations. The report also highlighted a rise in the unemployment rate to 4%, leading to concerns about the Federal Reserve cutting interest rates.
The rising unemployment rate in the U.S. prompted profit bookings in the crypto market as investors anticipated a rate cut by the Fed. However, the strong job growth data suggests that the economy is still robust in other areas, delaying the possibility of a rate cut.
Despite the recent pullback, analysts believe that the crypto market’s recovery is imminent, with Bitcoin likely to reach $71,000 before the upcoming FOMC meeting on June 12. The constant rejections above the $70,000 mark indicate a strong supply level, but the 50-day EMA and daily RSI provide hope for a potential uptrend in the near future.
As investors brace for a possible sharp move in Bitcoin on the day of the FOMC meeting, the crypto market remains volatile but resilient in the face of economic uncertainties. Stay tuned for more updates on the evolving crypto landscape.
