"US Interest Rate Cut Expectations Dashed"
Bitcoin, which had been trading above $71,000, fell below $60,900 at one point on the 7th (local time) due to the impact of U.S. employment market indicators.
According to Coinbase, a U.S. cryptocurrency exchange, at 7:05 PM Eastern Time on the same day, the price of one Bitcoin was $69,403, down 2.05% from 24 hours earlier.
Bitcoin, which had fluctuated above $71,000 the previous day, dropped to the $68,200 range at one point, threatening the $68,000 level. At the same time, Ethereum, ranked second in market capitalization, also fell 3.15% to $3,690. Ethereum had traded around $3,800 the day before.
This decline is interpreted as a result of indicators showing that the hot U.S. labor market, which pressures inflation, is not cooling down easily. The U.S. Department of Labor announced that nonfarm payrolls in May increased by 272,000 compared to the previous month, exceeding the Dow Jones expert forecast of 190,000 and the average increase of 232,000 over the past 12 months.
Expectations had risen that the overheating labor market was cooling down, as the U.S. employment increase had significantly decreased to 165,000 in April (revised figure) compared to January-March. However, the data on this day shows that the hot employment market continues, suggesting that a rate cut may be delayed.
The U.S. Federal Reserve (Fed) has reiterated that before lowering the benchmark interest rate, it needs confidence in the continued slowdown of inflation and that the easing of labor market overheating must precede it.
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