Crypto Market Down Amid Strong U.S. Jobs Data

The cryptocurrency market is down today, with total market capitalization falling by 1.33% to $2.6 trillion on June 7.

According to CoinTelegraph:

Bitcoin (BTC), the largest cryptocurrency by market cap, has dropped 2.7% to around $69,156. Meanwhile, Ether (ETH), the second-largest crypto, has dipped 4.1% to about $3,675.

Investors React to Strong U.S. Jobs Data

The crypto market's decline continues as investors respond to unexpectedly strong U.S. employment data. On June 7, the U.S. Labor Department reported 272,000 new jobs in May, significantly exceeding the forecast of 185,000 and April's 165,000. The unemployment rate also rose to 4.0% from 3.9%.

Impact on Federal Reserve Policies

The strong job data reduces the likelihood of the Federal Reserve cutting interest rates, vital for crypto liquidity. Market sentiment suggests slim odds of a rate cut in the upcoming FOMC meeting on June 12. As per the CME FedWatch tool, the probability stands at only 0.6% for June 12 and 8.88% for July 31, with higher expectations for September (46%) and November (47.4%).

Liquidations Amid Crypto Market Crash

The liquidation of long positions has worsened the market downturn, with over $387.83 million liquidated in the last 24 hours, including $348 million in long positions. More than 133,576 traders were affected, with the largest single order on OKX involving a $5.20 million ETH swap. This sell-off drives prices down further.

Bearish Divergence in RSI

Since May 1, the market cap surged on the anticipation of spot Ethereum ETFs. But the daily chart now shows a bearish RSI divergence, hinting at potential downturns. Bears may aim to drive the market value towards the 100-day SMA at $2.402 trillion.

Market Overview

The crypto market's decline is driven by robust U.S. jobs data and notable liquidations. Bitcoin (BTC) dropped 2.7% to approximately $69,156, while Ether (ETH) saw a 4.1% dip to around $3,675.

This content does not offer investment advice. Readers should conduct their own research. $BTC $ETH $BNB