Crypto Markets Dip Following Strong May Jobs Report

Bitcoin is consolidating around $71,000, while Ethereum and Solana dropped by 1%.

By: Mehab Qureshi Loading...

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Crypto markets traded lower on Friday morning after a stronger-than-expected May jobs report dampened the prospects of an imminent rate cut from the Federal Reserve.

Bitcoin continues to trade in a tight range around $71,000. Meanwhile, Ethereum, Solana and Polkadot declined by 1%.

BTC Price chart
BTC Price

The U.S. economy added 272,000 jobs in May, well above the 190,000 forecasted by Dow Jones and April’s 175,000, according to the Bureau of Labor Statistics. The unemployment rate nudged up to 4%, with health care, government, leisure and hospitality, and professional and technical services driving job growth.

Investors were hoping for weaker job numbers that would give the Federal Reserve the leeway to reduce interest rates.

The Federal Reserve will announce its next decision on interest rates following its June 11-12 policy meeting. Most market participants expect the central bank to leave rates unchanged.

On June 6, spot Bitcoin ETFs saw a total net inflow of $218 million. BlackRock's IBIT had a single-day inflow of $350 million, while Grayscale's GBTC reported an outflow of $37.5 million, according to data from ETF tracker Sosovalue.

U.S. stock futures were trading flat heading into the weekend. The Dow, Nasdaq and S&P 500 rose 0.1%. Meanwhile, the yield on the 10-year Treasury rose to 4.42%.