The US economy added 172,000 jobs in May, more than double the 80,000 economists had forecast, according to the Bureau of Labor Statistics data released Friday. The unemployment rate held steady at 4.3%. Bitcoin slid toward $60,000 immediately after the report, extending a week-long selloff that has erased roughly 17% from the cryptocurrency's price.
Jobs data smashes expectations
Most of May's gains came from leisure and hospitality, local government, and health care. The BLS also revised March and April higher by a combined 93,000 positions — April was bumped up by 64,000 to 179,000, March by 29,000 to 214,000. The revisions mean the labor market started the second quarter even stronger than first reported. Real wages slipped in April as inflation ran hot, even though nominal pay continued to rise.
Bitcoin's continued slide
Friday's selloff pushed bitcoin roughly 50% below its October all-time high near $126,200. The week of losses hasn't been just about the jobs number. Record ETF outflows and a rotation of institutional money into AI stocks have added heavy selling pressure. The macro backdrop keeps shifting against crypto: April's CPI came in at 3.8% year over year — the highest since May 2023 — fueled by energy prices tied to the Iran conflict.
Why the Fed stays hawkish
Friday's numbers give the Federal Reserve little reason to cut rates. Fed Governor Christopher Waller dismissed rate-cut talk as 'crazy.' Traders have now started pricing in the possibility of rate hikes by year-end. The next Fed meeting is June 16–17, and policymakers will have another reason to hold rates steady. Hot inflation plus a red-hot labor market makes for a tough environment for risk assets.
All eyes are on the Fed's two-day gathering in ten days. No one expects a rate cut — and some on Wall Street are bracing for hawkish language in the statement. For bitcoin, the path of least resistance still points lower unless something shifts on inflation or the central bank's tone. The jobs report just reinforced that shift isn't coming soon.
