After United States employment statistics exceeded projections on June 7, Bitcoin, Ethereum, and the wider altcoin market saw a drop. Still, traders think it’s a fleeting “shakeout” before the rising trend picks up steam.

Market Reactions and Analyst Insights

“Strong sell-off into support. Alts suffered more,” said pseudonymous crypto trader Il Capo of Crypto to their 848,000 X following on June 7. They noted it “looks like a shakeout,” in which a lot of investors sell off concurrently, generally owing to market or economic uncertainties.

The U.S. Employment Situation Summary Report showed a higher-than-expected rise in jobs on the same day, confounding the forecasts of crypto analysts that a declining employment report would put pressure on the decision to cut inflation and that Bitcoin would hit new highs as a result.

Impact of Employment Data

“A smaller surprise may call for rate reductions; next week we will see the CPI inflation report. Should CPI [year-on-year] be 3.3% or less, it would probably drive Bitcoin towards fresh all-time highs,” 10x Research director Markus Thielen said on June 5.

Though the data shows a distinct pattern, Thielen believes the employment report had no direct bearing on the decline in the crypto market. In a June 7 report seen by Cointelegraph, he said, “Crypto sold off at the end of Friday without a determining catalyst,” citing mixed data:

“US employment statistics were mixed; the number of jobs created surprised us even when the unemployment rate rose to 4.0%. This was absolutely the result of more part-timers.”

Market Performance and Future Outlook

The U.S. Bureau of Labor Statistics reports that total employment in the country climbed by 272,000 in May, while the unemployment rate dropped by 0.1%. The CEO of Crypto clarified that if the crucial “support levels hold, we should see bullish continuation soon.”

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Over the last 24 hours, Bitcoin dropped 1.99% and returned to $69,410. According to CoinMarketCap data, Ethereum dropped 3.22%, altcoins experienced much more substantial losses, PEPE dropped 10.54%, Solana dropped 4.89%, and DOGE dropped 7.88%.

Traders’ Perspectives

Other traders also pointed out that the market’s top is far off and suggested using the market drop as a buying point.

“The real bull market hasn’t even started yet,” pseudonymous crypto trader Kaleo asserted in a June 7 X post.

Pseudonymous crypto trader Jelle said on the same day, “Small dip just before the weekend; not what I expected, but we ball anyway.”

“I bought some dips for a quick turn-around trade,” said Jelle.