- Bitcoin (BTC) fell below $61,000 after the US economy added 172,000 jobs in May.
- Markets now expect at least one Fed rate hike by Dec 2026, some say even two or three.
- BTC dropped to around $59,500, triggering nearly $1.88 billion in liquidations.
Bitcoin fell below $61,000 after a much stronger-than-expected US jobs report forced markets to rethink the path of Federal Reserve policy.
The US economy added 172,000 jobs in May, more than double Wall Street’s estimate of 85,000. The Bureau of Labor Statistics also revised March payrolls higher to 214,000 and April to 179,000, adding another 93,000 jobs to the previous data.
The unemployment rate stayed at 4.3%, while wage growth slowed to 3.4% year-over-year. Inflation, however, remains at 3.8%, meaning wages are still losing purchasing power.
Leisure and hospitality accounted for 70,000 new jobs, helped by seasonal demand and preparations for the 2026 World Cup. Healthcare and local government hiring also remained strong. Air transportation lost 9,000 jobs following Spirit Airlines’ bankruptcy.
The report came after stronger-than-expected JOLTS data earlier in the week, where job openings jumped by 731,000 to 7.6 million. Together, the numbers point to a labor market that is stabilizing rather than weakening.
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Markets Reprice Fed Outlook
Before the report, traders did not fully price in a Fed rate hike until 2027. Now, markets expect a 25-basis-point hike by December 2026, with some analysts seeing two hikes by early 2027. BNP Paribas sees a growing possibility of three rate hikes.
According to The Kobeissi Letter, markets have undergone their most hawkish shift since the post-pandemic stimulus era. Only a few months ago, investors expected as many as four rate cuts in 2026.
Treasury yields rose immediately. The two-year yield climbed to 4.13%, while the 10-year yield reached 4.52%.
Stocks sold off as higher rates threatened valuations. The S&P 500 lost nearly $2 trillion in market value within hours and recorded its largest decline since October 2025. The Nasdaq also fell massively.
President Donald Trump questioned the reaction, saying stocks should be rising after strong jobs numbers. Markets, however, interpreted strong employment as reducing the need for lower interest rates.
Bitcoin Breaks Lower
Bitcoin dropped from around $62,500 to below $60,000 after the jobs report. At one point, BTC touched $59,517, its lowest level since October 2024. Daily losses reached nearly 7%.
CoinGlass data showed total liquidations of $1.88 billion, including $587.65 million in long positions. Bitcoin is now down more than 50% from its October 2025 peak, according to The Kobeissi Letter.
The broader crypto market has lost roughly $2.5 trillion during the same period. Spot Bitcoin ETFs have also become a source of pressure. Funds have recorded 14 consecutive sessions of outflows, with almost $5 billion leaving the products since mid-May.
Related: Bitcoin Drops 13% as Strategy Sale Fuels Debate Over Treasury Risk
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