Crypto market tumble seen as quick shakeout, traders expect 'bullish' rebound

Bitcoin (BTC), Ethereum (ETH), and the broader altcoin market tumbled after United States employment data exceeded expectations on June 7. However, traders remain confident that this is just a brief “shakeout” before the “bullish” trend continues.

“Strong sell-off into support. Alts suffered more,” pseudonymous crypto trader il Capo of Crypto declared to their 848,000 X followers on June 7. They added it “looks like a shakeout” — which is when a large number of investors sell-off at the same time due to uncertainty.

On the same day, the U.S. Employment Situation Summary Report revealed a higher-than-expected increase in jobs, contradicting crypto analysts’ predictions that a weaker employment report would put pressure on the decision to lower inflation, and Bitcoin would hit new highs as a result.

“A weaker surprise could bring back rate cuts, and next week, we will get the CPI inflation report. If CPI [year-on-year] is 3.3% or lower, it will likely push Bitcoin to new all-time highs,” 10x Research head of Research Markus Thielen stated on June 5.

However, total jobs in the U.S. increased by 272,000 jobs in May, and the unemployment “changed little” increasing 0.1% to 4% in May, according to the U.S. Bureau of Labor Statistics.

il Capo of Crypto explained if the key “support levels hold, we should see bullish continuation soon.

Bitcoin fell 1.99% over the past 24 hours, dropping back down to $69,410. Ethereum declined by 3.22%, while altcoins suffered even more significant losses, PEPE plunged 10.54%, Solana decreased by 4.89%, and DOGE tumbled 7.88%, according to CoinMarketCap data.