The cryptocurrency market faced a significant downturn today, impacting major assets such as Bitcoin, Ethereum, Solana, XRP, and Dogecoin. Bitcoin (BTC) is trading at $69,371 with a slight gain of 0.03%, while Ethereum (ETH) stands at $3,683.67, up 0.19%.

Notably, these fluctuations coincide with the latest U.S. labor market data, which reported an addition of 272,000 jobs in May, affecting investor confidence and expectations for Federal Reserve interest rate policies.

Crypto Market Selloff: Causes and Outlook

Despite the selloff, optimism remains in the market, thanks to strong Bitcoin ETF inflows. However, today the crypto market experienced a severe decrease, with major coins such as Bitcoin, ETH, BNB, SOL, XRP, and DOGE retreating.

The dramatic shift in attitude from earlier this week has spurred speculation about the cause of the selloff. The market had expected Bitcoin to reach a new high soon, while altcoins remained bullish.

Reasons Behind the Recent Crypto Selloff

The positive market sentiment observed earlier in the week, marked by significant price increases in cryptocurrencies, has abruptly shifted. On Friday, a major crypto market selloff occurred, coinciding with the release of the US Labor Department’s job data.

The report showed that the United States added 272,000 jobs in May, surpassing market expectations and the previous month’s numbers.

Although the unemployment rate rose to 4% from 3.9% in April, the strong non-farm payroll statistics have weighed on investor confidence.

The robust payroll report has lowered expectations of a potential interest rate decrease by the Federal Reserve, raising concerns in the broader financial sector and the cryptocurrency market.

Additionally, GameStop’s (GME) decision to sell $175 million in shares, which led to a 40% drop in its stock price, has added to the market’s anxiety.

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