$500 Million in Bitcoin Open Interest Wiped After US Jobs Report

The recent US jobs report had a major impact on the cryptocurrency market, wiping out more than $500 million in Bitcoin open interest.

This strong market activity followed mixed signals from the latest employment data.

The US jobs report reduced Bitcoin open interest

The U.S. Bureau of Labor Statistics reported that employment grew by 272,000 in the May survey. However, the household survey indicated job cuts and an increase in unemployment, which rose to 4.0% – the highest since January 2022.

Average weekly hours remain at 34.3, which usually suits the soft economy. Additionally, average hourly earnings rose 0.4 percent in May, up from 4.1 percent a year earlier.

Over the past three to six months, private sector hiring has averaged more than 200,000 new jobs per month, up from 155,000 at the end of last year. The aggregate weekly wage index for private sector workers, which combines employment, wages and hours, rose 5.4% over the past 12 months. That's down from 6%-6.5% a year ago, bringing it closer to 2018 highs for the 2009-2020 cycle.

After the release of the report, Bitcoin price showed a 2% correction, falling from $72,144 to $70,668. This sudden price movement triggered massive liquidity.

“Over $500 million worth of Bitcoin open interest was lost in minutes. Shorts and long pants were released,” IT Tech reported.

The jobs report's mixed signals led to high market volatility. While rising employment indicates economic strength, rising unemployment and fixed hours of the week point to underlying weakness.

The crypto market's reaction reflects its sensitivity to macroeconomic indicators, but it may soon bounce back.

“Unemployment is at its highest level since Covid, and markets have crashed. Often, the first step in these ads is wrong. Time will tell. But unemployment certainly seems to be down now, suggesting that US liquidity should pick up and pick up soon. Income will decrease,” commented Charles Edwards, founder of Capriol Investments.

Read more: How to protect yourself from inflation using cryptocurrency

As investors digest the implications of the latest jobs report, Bitcoin and other digital assets remain volatile.