The decline following the better-than-expected US employment data on June 7 impacted Bitcoin (BTC), Ethereum (ETH), and the overall altcoin market, causing a sharp drop in the cryptocurrency market. Despite the recent downturn, crypto analysts remain optimistic, viewing it as a temporary “shake-up” before the “continuation of the rise.”
Employment Data Hits Cryptocurrency Market
The US Employment Situation Summary Report released on June 7 showed a higher-than-expected increase in employment, contrary to analysts’ predictions. Many had hoped weaker employment data would trigger interest rate cuts and push Bitcoin to new highs. However, Markus Thielen, Head of Research at 10x Research, continues to believe that an inflation rate of 3.3% or lower could push Bitcoin to all-time highs.
Nevertheless, Thielen does not believe the recent employment report is the direct cause of the cryptocurrency market downturn. He emphasized that the employment data was mixed and noted there was no clear catalyst for the drop in cryptocurrencies. According to the report, the US saw an increase of 272,000 jobs in May, with the unemployment rate rising to 4.0% due to an increase in part-time workers.
Experts’ Cryptocurrency Comments
Currently, investors are closely monitoring key technical support levels for Bitcoin. Analysts like il Capo of Crypto, who has a large following on X, believe that the sell-off at these support levels due to market or economic uncertainty indicates a temporary shake-up rather than a permanent decline.
il Capo of Crypto emphasized that if the price holds above the support level around $69,000, the rise could soon continue. Despite the drop, many analysts see this as a buying opportunity. According to CoinMarketCap data, BTC fell 1.99% in the last 24 hours to $69,410, while ETH dropped 3.22% in the same period, and altcoins like Pepe (PEPE), Solana (SOL), and Dogecoin (DOGE) experienced more significant losses.
Other analysts like Kaleo and Jelle share il Capo of Crypto’s optimistic outlook. Kaleo claimed on June 7 that the real bull market has not yet started and did not see the small drop before the weekend as a problem. Jelle echoed this sentiment, stating that some drops are necessary for a quick recovery.
