US creates 272,000 new jobs in May as Bitcoin falls below $71,000

Bitcoin fell around 2% instantly as US nonfarm payrolls rose 272,000 month over month for May, way above the estimated 180,000. The rest of the crypto industry, along with the traditional equities markets, also took a hit.

Ethereum and most other tokens in the top 100 are down 1 – 3% on the news, with a handful of hold outs such as Cardano, TON, and ICP.

Unemployment was up due to a reduction in the labor force participation rate. Even though many more jobs were added than expected, fewer people were at work overall.

Senior Editor for Bloomberg commented that this made the chance of a July rate cut very unlikely.

“For anyone still thinking that the Fed might lower rates in July, surely this has got to remove that possibility.”

Treasury yields rose 11 basis points on the news on both the two and ten year.

Notably, revisions for previous months showed a drop of 15,000 fewer jobs which Bloomberg’s Global Economy Reporter, Enda Curran believes is “pretty modest in the scheme of things.”

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