Bitcoin Plunges Below $60,000 for First Time Since October 2024 as Blowout Jobs Report Crushes Rate Cut Hopes
Bitcoin suffered its worst weekly decline of 2026 on Friday, crashing below the $60,000 psychological barrier for the first time since October 2024 as a stronger-than-expected May jobs report all but eliminated hopes of a Federal Reserve rate cut this year.
The flagship cryptocurrency slid to an intraday low of $59,099 on June 5, wiping out all gains from the post-election rally that followed Donald Trump’s 2024 reelection victory. At its lowest point, Bitcoin had tumbled roughly 22% from its May 14 peak near $82,035, according to data from CoinGecko.
Hot Jobs Data Delivers Hammer Blow
The selloff accelerated sharply after the Bureau of Labor Statistics reported that the U.S. economy added 272,000 non-farm payrolls in May, far exceeding the consensus estimate of 185,000. Average hourly earnings also rose 0.4% month-over-month, above expectations, signaling persistent wage inflation.
The data sent shockwaves through risk assets across the board. The Nasdaq 100 capped its worst week in over a year as markets repriced the likelihood of Federal Reserve rate cuts. According to CME FedWatch, odds of a rate cut in 2026 collapsed to near zero, with some analysts now discussing the possibility of a rate hike before year-end.
“With inflation still running above the Fed’s target and the labor market showing little sign of weakening, the latest data all but rules out a June rate cut,” one analyst told CoinDesk.
The macroeconomic shock compounded existing pressures already weighing on Bitcoin, including sustained ETF outflows and broader risk-off sentiment driven by U.S.-Iran tensions and rising oil prices.
$1.7 Billion in Crypto Liquidations
The brutal week triggered a cascade of forced selling across the crypto derivatives market. Data from Coinglass shows that roughly $1.7 billion in leveraged crypto positions were liquidated within 24 hours, with long positions accounting for the overwhelming majority of the carnage.
Bitcoin open interest plunged as traders scrambled to exit positions, and funding rates turned deeply negative across major exchanges, a sign that short sellers were now paying a premium to maintain their bearish bets.
Strategy’s $11.2 Billion Paper Loss Adds to Panic
Adding to the sense of crisis, Michael Saylor’s Strategy (formerly MicroStrategy) is now sitting on an $11.2 billion unrealized loss on its massive Bitcoin holdings, which were accumulated at an average price significantly above current market levels.
Data from BitcoinTreasuries shows Strategy holds approximately 226,331 BTC, making it the largest corporate holder of Bitcoin. The company’s “never sell” doctrine is being tested as the paper losses mount, though Saylor has maintained that the current downturn is driven by capital rotation into AI rather than any fundamental weakness in Bitcoin itself.
Spot Bitcoin ETFs recorded $396.6 million in net outflows on the same day, contributing to a broader $4.4 billion in total ETF outflows since mid-May. Fidelity’s FBTC was among the hardest-hit funds.
What Comes Next?
Analysts are divided on whether $60,000 will act as support or simply become resistance on the way down. The 200-week moving average sits around $48,000, which several analysts have flagged as the next major downside target if selling pressure continues.
On the bullish side, long-term holders have historically accumulated during periods of maximum pessimism, and on-chain data suggests that whale wallets have been quietly buying the dip.
FAQ
Is Bitcoin likely to fall further?
Technical analysts point to $48,000 (the 200-week moving average) as the next significant support level if $60,000 fails to hold. The macro environment, particularly Fed policy, will be the dominant driver in the near term.
Could a rate hike actually happen in 2026?
The blowout jobs report has reopened the door to that possibility. While markets had been pricing in multiple rate cuts for 2026, the persistent strength in the labor market and sticky inflation could force the Fed to consider tightening instead.
What does this mean for altcoins?
Historically, sharp Bitcoin declines tend to drag the entire crypto market down with them. Ethereum, Solana, and other major altcoins have already suffered double-digit percentage losses during this week’s selloff.
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