Bitcoin Crashes 4.1% to $60,968 as Fed Rate Hike Bets Surge

Bitcoin fell 4.1% to $60,968 USD on June 5-6 as a stronger-than-expected US jobs report triggered a broader market selloff. The May non-farm payroll report delivered 172,000 new jobs, beating the 130,000 consensus estimate and raising Fed rate hike odds to 85%. Institutional investors rotated capital away from crypto into safer assets like gold and AI stocks, pressuring the entire digital asset market.

Jobs Data Crushes Crypto Rally

The US jobs report released on June 5 at 8:30 AM ET showed 172,000 new positions added in May, with the unemployment rate holding at 4.3%. This beat consensus by 32,000 jobs and followed an upward revision of April to 214,000. Markets immediately repriced Fed expectations, with traders now pricing an 85% probability of at least one 25 basis point rate hike at the June 17-18 FOMC meeting. Bitcoin fell 1.83% on the day to $60,912.50 USD, then dropped further to $60,968 as the broader selloff intensified.

Capital Flows Shift Away From Crypto

Institutional investors moved billions from cryptocurrency into alternative assets. Bitcoin recently fell below $65,000 USD, losing billions after a weak recovery attempt. Analysts attribute the decline to capital rotation from crypto to safer assets such as gold and AI-related stocks amid geopolitical tensions and Fed rate hike expectations. The crypto market shed more than 14% across seven consecutive sessions, with altcoins following Bitcoin’s decline.

Technical Indicators Show Extreme Oversold Conditions

Bitcoin’s technical setup signals a potential bounce, though downside risks remain. The Relative Strength Index (RSI) hit 18.92, indicating oversold conditions. The Commodity Channel Index (CCI) fell to -162.85, also oversold. The Stochastic oscillator registered 7.13 on the %K line, near historic lows. Meyka’s stock grade for BTCUSD is C+, with a HOLD recommendation. The 12-month price target stands at $97,867.61 USD, suggesting 60% upside from current levels if the forecast holds.

Support Levels and Near-Term Outlook

Bitcoin faces key support at $60,000 USD. Technical analysts identify a potential double bottom pattern forming near the February low of $59,735 USD, which could signal a short-term recovery if tested. Resistance sits around $65,000 USD, a level that served as support in March but has now become strong resistance. The 50-day moving average at $76,663 remains well above the current price, indicating a weakening intermediate trend.

Final Thoughts

Bitcoin crashed 4.1% to $60,968 USD as strong jobs data raised Fed rate hike odds to 85%. With Meyka rating BTCUSD a C+ HOLD and a 12-month target of $97,867.61 USD, the data points to oversold conditions but limited near-term upside without a broader market stabilization.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.