Following the slight pullback of 0.48% on Thursday, the bears took over Bitcoin last night. With a sudden crash in Bitcoin price by 2.05% on Friday, the uptrending top altcoins and the entire crypto market turned 180 degrees for a major pullback.
With the Ethereum price down by 3.56% and Solana by 4.49%, the top altcoins retrace to the nearest support levels. The meme coin sector, performing well over the past few weeks, has taken a hit with top performers like PEPE crashing by 10.49%, Floki by 11.87%, and WIF by 11.58%.
The overnight bearish turnaround in the crypto market wipes away $360 million in long liquidations, per Coinglass. Meanwhile, the U.S. Bitcoin ETFs maintain a positive outlook with a daily total net inflow of $130.99M, with IBIT bringing the majority of $168M. This marks the 19th positive day but also reflects a declining trend in the inflows after the second-biggest daily inflow of $886M on Tuesday.
The U.S. Job Reports Crash Bitcoin
On June 7th, the Bitcoin price slipped from $70,771 to end the day at $69,326, an intraday drop of 2.05%. This sudden move in the cryptocurrency market leader is influenced deeply by the U.S. May month Jobs report issued by the Labor Department yesterday.
The U.S. Labor Department brings a report highlighting the addition of 272,000 jobs last month. This is well beyond the anticipated number of 185,000 and unprecendly higher than the previous month’s data of 165,000 jobs.
Furthermore, the superpower finds an increase in the unemployment rate, peaking at 4%, touching the January 2022 levels.
Actual Influence Of Jobs Report on Crypto
With the rising unemployment rate in the U.S., the crypto market is quick to react as profit bookings start. But why? Well, even though unemployment is rising, the Fed is not likely to cut interest rates in the near future. It could be because there are signals that the economy is still strong in other areas, like job growth.
Hence, if the Fed decides to cut rates too soon, inflation could increase, which is already a concern.
Now, why did the market fall? In simple terms, the employment data limits the chances of the U.S. Feds cutting rates. The broader market anticipated a rate cut in the coming Federal Open Market Committee (FOMC) meeting on June 12.
Why does the crypto market need a rate cut? Well, with a potential cut down in the rates, the market will experience a boost in demand with lower borrowing costs, and the liquidity will increase. Hence, the rate cuts are the next catalysts to fuel the bull market and drive the prices of Bitcoin and altcoins higher.
Will Bitcoin Continue The Uptrend?
Following the overnight crash under the $70,000 level, the Bitcoin price trades at $69,343 at a slow pace. With no major movement in the early Asian hours, a Doji candle is visible, trying to find support.
Tradingview
In the 1D chart, it is visible that the Doji attempts to take support at the 23.60% trend-based Fibonacci level. However, the crypto price action shows the bearish engulfing candle formed last night, completing an evening star.
Further, the constant rejections from and above the $70,000 mark reveal a huge supply at this psychological level. The uptrend 50D EMA might soon provide dynamic support with the daily RSI sustaining above the halfway line.
Hence, the overnight pullback is mostly likely a quick FUD reaction to the employment data. This project’s potential recovery in the crypto price will reach $71,000 before June 12, the FOMC meeting.
Because of the recent hawkish data, the possibility of a sharp move in Bitcoin on the day of the FOMC meeting is high.
Also Read : Top Four Altcoins With 100X Potential to Stack Right Now
This news is republished from another source.
