Bitcoin plunged below $60,000 on Monday, marking its lowest point since October 2024, as a week-long selloff accelerated following Friday's robust May employment data. The world's largest cryptocurrency shed roughly 8% from recent highs, joining a broader retreat in risk assets triggered by higher Treasury yields.
The jobs report delivered a surprise to the upside. The U.S. economy added more positions than forecast, signaling resilience in the labor market. This triggered a sharp jump in bond yields as investors repriced expectations for Federal Reserve rate cuts. Higher yields make non-yielding assets like Bitcoin less attractive relative to fixed-income alternatives, driving capital away from cryptocurrencies and equities.
The move underscores Bitcoin's sensitivity to macroeconomic data and rate expectations. Throughout 2024, the digital asset has traded heavily on Fed policy signals and inflation concerns. A stronger labor market suggests less urgency for interest rate relief, keeping yields elevated and pressuring speculative positions.
Bitcoin's break below $60,000 represents a critical technical support level. The decline erases gains from earlier in the month when the asset briefly approached $65,000. Traders had positioned for a sustained rally after April's rally, but the employment surprise triggered forced liquidations across leveraged positions in crypto markets.
The selloff extends beyond Bitcoin. Ethereum and other altcoins fell in sympathy, while traditional risk assets including equities also retreated. The S&P 500 and Nasdaq felt pressure from the same yield-driven dynamics that hammered cryptocurrency prices.
The question now centers on whether this represents a temporary pullback or the start of a larger correction. Bitcoin's weekly chart shows momentum indicators shifting negative, and volume on the sell-off ran high, suggesting conviction behind the move lower. Traders will watch the $55,000-$56,000 level as potential support