Last Friday, Bitcoin’s price dropped below $70,000, erasing most of its weekly gains. This steep decline was part of a broader crypto market selloff, triggered by an unexpectedly strong US employment report. The report revealed that 272,000 jobs were added in May, significantly surpassing the forecast of 185,000. This strong jobs report and higher-than-expected wage growth led to a sell-off in stock market futures and a surge in Treasury yields. The prospect of higher interest rates pressured Bitcoin, causing it to fall sharply from a two-month high, currently priced at $69,740.
Additionally, Roaring Kitty’s YouTube livestream failed to deliver any significant news, contributing to further losses. Notably, the GME meme coin plummeted 50% from its highs, with other meme coins also experiencing sharp declines.
In the derivatives market, Bitcoin futures positions have reached a record high of $37.7 billion, surpassing the previous peak set in March. The surge in open interest coincides with a streak of net inflows into spot Bitcoin ETFs, now extending to 18 days. Analysts at 10x Research predict a potential surge to $83,000, contingent on Bitcoin breaking above $72,000 to complete an inverted head-and-shoulders pattern.
