- 1 The Bureau of Labor Statistics reported on June 7 that the U.S. economy has witnessed the addition of 272,000 jobs in May 2024, which is relatively high compared to expectations.
- 2 Around the same time, wage growth has also picked up by 0.4% from the previous month and 4.1% annually.
- 3 It has significantly impacted the financial and crypto markets and also raised anticipations around the upcoming Fed rate release.
The US Bureau of Labor Statistics has recently published its employment report for May 2024. The report represented that the nonfarm payrolls in the US exceeded expectations by over 85,000.
After the positive results for May, the expectations were revised from 165,000 to 185,000. However, the reported nonfarm payrolls reached 272,000.
Despite the increase in payrolls, the US unemployment rate rose from 3.9% to 4%, and the labor participation rate decreased from 62.7% to 62.5%. However, the average hourly earnings have also exceeded expectations and the previous month’s data by 0.2% and 0.1%, respectively, reaching 4.1%.
Market Updates
Around all the developments and updates in the crypto industry, the market was experiencing a lasting bull run as Bitcoin was trading above $70,000 and Ethereum was approaching $3600.
The macroeconomic market updates have significantly affected the crypto market recently, as Bitcoin fell below 70,000 and even hit its short-term support level of around 68,000.
When writing, Bitcoin was trading at 69,311 and experiencing a flattish market, trading between $69,300 and $69,400, forming a bear candle. However, buyers again stick to the market after experiencing sell volume for two consecutive trading sessions.
During the same time, a similar trend was observed in Ethereum, as the ETH was trading at $3,682, experiencing a flattish trend after experiencing a declining trend on the previous day. Looking at the short-term trendline, ETH is experiencing a rising trend surrounding the ETH ETF approval buzz.
The upcoming details and the expected launch of ETH ETF will again boost the prices of ETH and revive the rising trend in Ethereum.
Reasons Behind The Recent Market Fall
Some crypto market observers and analysts are correlating the latest economic reports with the recent price decline in the crypto market. They are doing so because all the economic updates impact long and short-term capital market expectations.
Moreover, Markus Thielen, founder of 10x Research, has turned bearish on risky assets like stocks and cryptocurrencies due to raising concerns about persistent inflation and rising bond yields.
The US dollar is gaining value against other currencies, as per the data, and this situation usually results in the reduction of funds from riskier asset classes like stocks and cryptocurrencies and moving them to safer options like the money market and fixed-income instruments, which might lead to further declines in the market.
The recent US NFP report strengthened the US dollar as euros and Canadian dollars weakened.
Disclaimer
The analysis given above is for informational and educational purposes only. You should not take it as financial, investment, or other advice. Investing in or trading crypto assets is risky. Please consider your circumstances and risk profile before making any investment decisions.
