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<p>The latest employment data in the United States has shaken the crypto market, causing a sudden and significant drop in the prices of bitcoin and most altcoins. This news, which surprised many investors, calls into question the hopes for an imminent interest rate cut by the Federal Reserve.</p>
<h2 id="h-the-direct-impact-of-employment-data">The direct impact of employment data</h2>
<p>The publication yesterday of employment data in the <a href="https://www.cointribune.com/en/the-end-of-bitcoin-in-the-united-states-the-senate-takes-action-2/" target="_blank" rel="noopener noreferrer nofollow">United States</a> triggered a sharp drop in the prices of major cryptos. After a slight decrease of 0.48% on Thursday, the price of Bitcoin fell by 2.05% on Friday, reaching 69,326 dollars, down from 70,771 dollars the day before. This marked decline reflects growing uncertainty and the market’s quick reaction to economic news.</p>
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<p>Ethereum, the other major crypto, was also heavily impacted, with a 3.56% decrease. Solana was not spared, registering a 4.49% drop. The meme coins, which had recently seen good performance, suffered even greater losses. PEPE fell by 10.49%, Floki by 11.87%, and WIF by 11.58%. <a href="https://coinpedia.org/news/crypto-market-crashes-as-u-s-job-data-tempers-rate-cut-chances/" target="_blank" rel="noopener noreferrer nofollow">In short, the entire crypto market was affected by this economic news.</a></p>
<p>Furthermore, the market downturn led to massive liquidations of long positions, totaling 360 million dollars.</p>
<h2 id="h-reactions-of-bitcoin-investors">Reactions of Bitcoin investors</h2>
<p>The employment data published by the United States Department of Labor revealed the creation of 272,000 jobs in May, far exceeding the 185,000 expected and the 165,000 of the previous month. This significant increase in the number of jobs was accompanied by a rise in the unemployment rate to 4%, a level last reached in January 2022.</p>
<p>Faced with these figures, investors quickly reacted by anticipating that the Federal Reserve would not reduce interest rates in the near future. This prospect triggered rapid profit-taking on bitcoin and other cryptos. Indeed, the data indicates that the economy remains robust despite the increase in unemployment, limiting the chances of a rate cut by the Fed at the next Federal Open Market Committee (FOMC) meeting scheduled for June 12.</p>
<p>The interest rate cut is perceived by bitcoin investors <a href="https://www.cointribune.com/en/crypto-investors-shaken-by-us-economic-data/" target="_blank" rel="noopener noreferrer nofollow">as a potential catalyst for a bullish market</a>, as it could increase demand and liquidity by reducing borrowing costs. However, the recent employment numbers show an economy strong enough to justify maintaining current rates, or even a more restrictive monetary policy, which has contributed to the decline in crypto prices.</p>

Why Did Bitcoin Collapse Again?

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