A stronger-than-expected US labor market report sent Bitcoin plunging to $59,825 on Friday, its lowest since October 2024, before the asset recovered above $61,000 at press time, according to TradingView data.

US job growth topped all forecasts in May and the unemployment rate held steady, driving the dollar to its biggest weekly gain in three months and triggering an intense selloff that swept through crypto alongside equities and commodities.

According to Fabian Dori, Chief Investment Officer at Sygnum Bank, the latest nonfarm payrolls data reinforces the case for the Fed to maintain rates, affecting the backdrop for Bitcoin and other digital assets.

“With April CPI already at 3.8%, resilient payrolls take a June cut off the table and harden the case that the Fed stays put through the summer,” Dori commented. “Watch the repricing rather than the headline. Prediction markets went in near 97% for a June hold and roughly even on any cut in 2026, and a hot number pushes that toward no cuts.”

“For digital assets, that delays the rate-driven liquidity tailwind people are hoping for. Other liquidity elements, including the eSLR reform and Treasury cash-balances, may still be supportive at the margin. But a hot labor print is likely the dominant macro impulse,” he added.

The total crypto market capitalization declined 5% in 24 hours to around $2.2 trillion as Bitcoin extended its losses and dragged the wider market lower. Among the major assets, Ether dropped 10%, BNB and XRP each fell 5%, while Solana posted a 6% decline.

Zcash, NEAR Protocol, and Hyperliquid, three crypto assets that recently drew strong market interest, posted double-digit losses following sell-offs by Arthur Hayes, one of their most vocal backers. Zcash faces additional headwinds due to ongoing concerns surrounding a critical counterfeiting vulnerability in its Orchard shielded pool.

This is a developing story.