Key Takeaways
- The U.S. added 139,000 jobs in May, slightly exceeding forecasts, but Bitcoin remained flat, signaling investor uncertainty amid mixed economic signals and global tensions.
Ethereum, XRP, Solana, and Dogecoin saw steeper declines, with Dogecoin falling 6.4%, reflecting heightened volatility and risk-off sentiment across digital asset markets.
Bitcoin traded mostly flat Friday morning after the Bureau of Labor Statistics released a mixed but generally positive nonfarm payrolls report for May. The U.S. added 139,000 jobs last month—slightly surpassing economists’ expectations of 125,000, according to Dow Jones—but still lagging behind April’s total of 177,000 and the 2024 monthly average of 144,000. While the figure suggests continued economic resilience, investors appear unconvinced that it marks a sustained rebound.
Earlier this week, weaker-than-expected data from the ADP employment report and a contraction in the Services PMI index—which dipped to 49.9%, below the 50% breakeven level—had already set a cautious tone for markets. The broader economic picture remains uncertain, clouded by softening indicators and geopolitical pressures.
Bitcoin Dips Despite Brief Surge Above $105K
Bitcoin briefly rallied above $105,000 earlier today but has since fallen 1.5% over the past 24 hours, trading at $103,919 as of writing, according to CoinGecko. The flagship cryptocurrency is down 5.4% over the last two weeks amid growing concerns over U.S. trade policy tensions and global macro headwinds.
“Bitcoin’s rally is showing signs of fatigue, and macroeconomic uncertainties are beginning to take a bite,” 10X Research noted in a Friday report. Although Friday’s job numbers were stronger than expected, the slowdown from April and volatility in other economic indicators are tempering investor enthusiasm.
Altcoins Take Bigger Hit as Sentiment Wavers
While Bitcoin’s price drop was moderate, altcoins experienced more pronounced losses. Ethereum tumbled 5.5% to $2,481.68, and XRP slipped 2.6%. Solana dipped 1.8%, while Dogecoin—often sensitive to social sentiment and media buzz—fell a steep 6.4% to $0.1789.
Also Read: Trump and Musk’s Fallout Triggers Crypto Crash and $100B Tesla Stock Wipeout
The decline in digital assets comes amid rising political tension, including a high-profile spat between former President Donald Trump and Dogecoin advocate Elon Musk. These broader market anxieties, combined with decelerating job growth, appear to be weighing heavily on crypto investor sentiment.
For now, the labor market shows signs of slowing, but not enough to suggest a looming crisis. As macroeconomic clouds gather, crypto markets remain on edge—watching closely for the next catalyst.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
