Bitcoin, Ether, and Cardano tumbled toward monthly lows on June 5 after a much stronger-than-expected U.S. jobs report fueled fears that the Federal Reserve will keep interest rates higher for longer, triggering a broad sell-off in risk assets.
The Bureau of Labor Statistics reported that the economy added 172,000 nonfarm payrolls in May — nearly double the consensus estimate of 85,000. The unemployment rate held steady at 4.3%, while revisions added 93,000 jobs to the previous two months, underscoring persistent labor market strength. The data prompted traders to aggressively scale back expectations for near-term rate cuts; BNP Paribas forecast three Fed rate hikes beginning in December, and Polymarket assigned a 52% probability of a rate increase by year-end.
Bitcoin plunged below $60,000 for the first time since 2024, dropping from around $62,000 to an intraday low of roughly $59,100. The decline wiped out over $1.7 billion in crypto long positions in 24 hours, with $155 million liquidated within a single hour after BTC breached the key support level. Ether and Cardano slid in sympathy, confirming a macro-driven move rather than any coin-specific catalyst.
Amid the carnage, U.S. spot Bitcoin ETFs recorded $3 million in net inflows, ending a 13-day streak of outflows that had drained $4.37 billion. On-chain data showed short-term holder realized losses hitting a new all-time low, while long-term holders now control roughly 5.3 million BTC at a loss — the highest underwater supply since the COVID-era crash. Analysts pointed to the $55,000 zone as the next major support, with a break potentially exposing $50,000.
Traders now await upcoming Fed commentary and inflation data for any signal that rate cuts could still materialize later this year, which could reverse the selling pressure. Institutional infrastructure continues to build, but for now, macro headwinds remain the dominant driver.
