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Crypto Market Tumbles as Strong Jobs Data Sinks Risk-On Assets

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The cryptocurrency market took a hit on June 7, with the total market capitalization falling by 1.33% to $2.6 trillion, as investors reacted to stronger-than-expected U.S. jobs data.

Bitcoin, the largest cryptocurrency by market capitalization, fell 2.7% to around $69,156, while Ether, the second-largest crypto, dipped 4.1% to trade around $3,675.

TOTAL crypto market capitalization. Source: TradingView

The jobs data, which showed the addition of 272,000 jobs in May, far surpassing estimates of 185,000, has pushed back the odds of the Federal Reserve lowering interest rates. This has led to a shift in investor sentiment, with risk-on assets such as cryptocurrencies, emerging market stocks, bonds, and commodities taking a hit.

The Federal Open Market Committee (FOMC) is due to meet on June 12 to discuss rates, with markets now seeing little prospect of a cut resulting from the next two such meetings.

The liquidation of long positions versus short ones across the broader crypto market has further fueled the underperformance of digital assets. Over $380 million in liquidations have occurred in the last 24 hours, with more than $249 million in leveraged positions liquidated in the last hour alone.

The TOTAL market capitalization has been increasing since May 1, but a bearish divergence in the RSI (Relative Strength Index) on the daily chart suggests that the bears may be in control of the market, potentially pulling the TOTAL market value toward the 100-day simple moving average (EMA) at $2.402 in the short term.

As the crypto market continues to navigate this uncertain landscape, investors will be watching closely for any further developments in the jobs market and the Fed’s rate decisions.

Source: Cointelegraph

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