Today’s drop in Bitcoin prices is due to unexpectedly strong U.S. job data and a slight decrease in the amount of Bitcoin held by its biggest holders.
Bitcoin (BTC) prices have fallen by about 3.25% in the past 24 hours, reaching $3,690 on June 8. Despite this, BTC/USD is still performing better than the overall cryptocurrency market, which has seen a 3.75% drop in the same period.
The main reasons for Bitcoin’s price decline today are the better-than-expected U.S. employment figures and a small reduction in the Bitcoin supply controlled by the wealthiest investors.
Rising Bond Yields Impact Bitcoin Demand
The recent strong U.S. employment report for May is a significant factor behind Bitcoin’s price drop.
Nonfarm payrolls increased by 272,000 last month, exceeding all 77 predictions in Bloomberg’s economist survey. Following this news, Treasury yields went up, with two-year and 10-year yields both rising by around 12 basis points.
As a result, stock prices fell, with the S&P 500 Index dropping about 0.3%. At the same time, the U.S. dollar gained strength.
Summary Review: Today’s decline in Bitcoin prices can be attributed to stronger-than-expected U.S. job data and a slight reduction in Bitcoin supply held by large investors. Rising bond yields following the positive employment report have also reduced traders’ appetite for Bitcoin, causing its value to drop. As a result, while Bitcoin has seen a 3.25% decline, the broader cryptocurrency market has also experienced a similar downturn.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment dec
