Bitcoin’s price tumbled beneath the $60,000 threshold following a surprisingly robust U.S. employment report, which dampened expectations for Federal Reserve rate reductions and boosted bets on possible rate increases later this year. According to crypto.news data, BTC hit an intraday low near $59,100 on June 5 before settling around $59,400. This decline extended a roughly $19,000 drop over ten days from recent highs, marking the first time the cryptocurrency slipped below the critical $60,000 support since early 2024.
The latest selloff was triggered by labor market figures showing the U.S. economy added 172,000 nonfarm payrolls in May, far exceeding the anticipated 85,000. The unemployment rate remained stable at 4.3%, while revisions added another 93,000 jobs to prior months, underscoring persistent strength in hiring. BNP Paribas added to the hawkish tone by forecasting three Fed rate hikes starting in December, citing ongoing inflation risks and firm employment conditions.
Derivative markets amplified the downturn as leveraged positions unravelled. CoinGlass data revealed over $155 million in crypto long positions liquidated within an hour, with total liquidations surpassing $1.7 billion over 24 hours. Forced selling intensified after Bitcoin breached the $60,000 level, triggering liquidation cascades across major exchanges.
Institutional flows offered a glimmer of stability. U.S. spot Bitcoin ETFs recorded roughly $3 million in net inflows on June 4, ending a 13-day withdrawal streak that had drained $4.37 billion from the funds, according to SoSoValue. Although modest, this inflow interrupted the longest period of sustained ETF selling this year.
Safe-haven assets like gold and silver also fell during the risk-off move, dropping about 3.5% and 7.5% respectively, indicating broad-based de-risking rather than rotation into precious metals. Strategy, the firm formerly known as MicroStrategy, saw its unrealized losses on Bitcoin holdings exceed $12.7 billion as BTC traded below its average acquisition cost, sparking renewed debate on corporate Bitcoin treasury strategies. CryptoQuant CEO Ki Young Ju minimized concerns, noting that the firm bought over 700,000 BTC from long-term whales and sold only 32 BTC, helping absorb supply that might otherwise have hit the market.
On-chain metrics suggest capitulation may be nearing extreme levels. The percentage of Bitcoin holders in profit has hit a long-term trendline that historically coincided with major cycle lows. Analyst Seth observed that drawdown depth has decreased each cycle, hinting at a potential bottom if patterns repeat. Additionally, short-term holders are realizing losses at an unprecedented rate, with the short-term holder realized profit/loss ratio hitting an all-time low. Long-term holders now control roughly 5.3 million BTC at a loss, exceeding post-FTX levels and marking the highest underwater long-term supply since the COVID-era crash.
Technically, Bitcoin is trading well below the Supertrend indicator near $69,700, which acts as immediate resistance. The MACD line has dropped sharply below its signal line with the histogram expanding negatively, reflecting sustained downside momentum. The loss of $60,000 puts the next major support at the February low near $55,000. A decisive break below that could expose the psychological $50,000 level and trigger additional liquidation-driven selling. Bulls need to reclaim $60,000 quickly to alleviate pressure, while a move above $69,700 would invalidate the bearish structure and reopen the path toward $75,000. Until then, strong economic data, rising rate-hike expectations, and heavy derivatives positioning remain key risks for Bitcoin.