Recent events in the cryptocurrency world have once again highlighted the fragility of the market. The revision of employment data from the U.S. Bureau of Labor Statistics led to a significant drop in crypto capitalization.
Overview of the Crypto Market Crash
The U.S. Bureau of Labor Statistics reported a revision in employment data, revealing that the economy had lost 911,000 jobs compared to previously published figures. This correction resulted in a nearly $60 billion decrease in crypto capitalization.
Market Reaction to Data Revision
With the revised employment data, sentiment towards Bitcoin turned strongly negative, with a decrease of about 1.8%. Ethereum fell by approximately 1.6%. The altcoin market also suffered significant losses: Dogecoin dropped over 4%, Solana fell by 3%, Cardano declined by 3.5%, and XRP was down by 2.5%. All remained below pre-announcement levels.
Trader Expectations and Forecasts
Traders anticipate significant changes. Bitcoin forecasts present potential scenarios with prices ranging from ~$105,000 to ~$120,000, while Ethereum predictions suggest a range between ~$4,050 and ~$4,600. These expectations are also influenced by further signals from the Federal Reserve and overall market liquidity.
The crash in the crypto markets, prompted by the employment data revision, serves as a powerful reminder of the market's volatility. Expectations regarding Fed policy and upcoming employment data will be key factors for the market in the coming months.
