Bitcoin Slides to $60,000 After Strong U.S. Jobs Data Dents Rate-Cut Hopes
Bitcoin fell sharply after May's U.S. Employment Situation report undercut the near-term case for Federal Reserve easing. Nonfarm payrolls increased by 172,000 in May, topping the 85,000 consensus estimate shown in TradingEconomics screen data, while the unemployment rate was unchanged at 4.3%.
CryptoSlate data showed BTC near $60,000 on June 5, down 5% over 24 hours and 17% over seven days. Average hourly earnings rose 0.3% month over month, and annual wage growth slowed to 3.4% from the prior month, according to TradingEconomics.
The macro takeaway is that resilient labor data can keep interest rates higher for longer, tightening dollar liquidity and weighing on Bitcoin and other risk assets.
Market sentiment: Cautiously bearish; risk-off; macro-driven; de-risking. Traders continue to treat Bitcoin as a liquidity-sensitive asset as stronger-than-expected hiring reduces urgency for rate cuts.
A similar dynamic played out after the January 2024 U.S. jobs report, when payrolls rose by 353,000 versus a 180,000 forecast. The 10-year Treasury yield pushed above 4% and the dollar strengthened, while Bitcoin slipped 0.19% to $43,020 in that session, suggesting crypto's immediate reaction can be muted when crypto-specific catalysts dominate (Reuters).
This time, the selloff is deeper and follows a market already on the back foot after sliding from the low-$60,000 range.
Looking ahead, higher yields and a firmer dollar could continue to pressure crypto liquidity if markets keep pushing out rate-cut expectations. If the 2-year Treasury yield and DXY hold their post-release gains, the hawkish interpretation is likely to persist. If yields retreat and the dollar gives back the spike, attention may shift toward softer private-sector and wage details.
Opportunities: A pullback in yields and the dollar could support rebuilding BTC exposure after a confirmed recovery, signaling easing liquidity pressure.
Risks: If the 2-year yield and DXY remain elevated, trimming high-beta BTC exposure may help limit downside tied to tighter dollar liquidity.
