Bitcoin dropped below $61,000 alongside sharp declines in gold and silver after stronger-than-expected U.S. jobs data fueled bets that the Federal Reserve will raise interest rates again before year-end.
Bitcoin, Gold and Silver Drop as Rate Hike Bets Strengthen
Key Takeaways
- Bitcoin fell to around $60,946, down roughly 3% in 24 hours, while gold shed 2.4% and silver tumbled 6.1% on June 5.
- U.S. nonfarm payrolls rose by 172,000 in May, well above consensus, pushing Fed rate hike odds for December to 68%.
- The Crypto Fear and Greed Index plunged to 9, signaling extreme fear across digital asset markets.
Bitcoin was trading at $60,946 at press time, down nearly 3% over the prior 24 hours. Earlier in the session on June 5, BTC briefly dipped below $60,000, a level not seen since late 2024.
The selloff was not limited to crypto. Spot gold fell 2.4% while silver dropped 6.1% in the same session, as the entire non-yielding asset complex came under pressure from rising rate expectations.
The trigger was the May jobs report from the U.S. Bureau of Labor Statistics. Nonfarm payrolls increased by 172,000 in May 2026, with unemployment holding steady at 4.3%. Prior months were also revised higher, with March and April payrolls adding a combined 93,000 jobs above previously reported totals.
Markets responded by repricing rate expectations sharply. CME FedWatch data showed the probability of a December rate hike jumped to roughly 68%, up from about 50% before the payrolls release. The Federal Reserve currently holds its federal funds target range at 3.5%-3.75%, as set at its April 29 meeting, with officials emphasizing that future adjustments depend on incoming data.
Why Higher Fed Rate Expectations Pressure Bitcoin and Precious Metals
Bitcoin, gold, and silver share one characteristic that makes them vulnerable to rising rate expectations: none of them generate yield. When markets price in higher interest rates, assets like Treasury bonds become more attractive relative to non-yielding stores of value.
The synchronized decline across all three assets on June 5 underscored that this was a macro-driven move, not a crypto-specific event. Nicolai Sondergaard of blockchain analytics firm Nansen noted that “strong jobs data kills the rate cut narrative,” a sentiment that rippled through both metals and digital assets.
“Strong jobs data kills the rate cut narrative.”
— Nicolai Sondergaard, Nansen, via Decrypt
The distinction between Bitcoin’s safe-haven narrative and its actual short-term behavior was on full display. While proponents often compare Bitcoin to digital gold, both assets fell together when real yields rose, suggesting that in rate-sensitive environments, the correlation between crypto and traditional hedges tightens rather than diverges.
This dynamic matters in the context of broader regulatory shifts affecting crypto platforms, where macro headwinds compound policy uncertainty. Meanwhile, institutional developments like Japanese banks exploring stablecoin launches suggest that longer-term infrastructure building continues regardless of short-term price action.
What the Selloff Means for Crypto Market Sentiment
The Fear and Greed Index dropped to 9 out of 100, a reading labeled “Extreme Fear.” That score reflects broad caution among crypto market participants as macro risks dominate price action.
Bitcoin’s 24-hour trading volume reached $37.3 billion, indicating heavy activity as traders repositioned. The total market capitalization for BTC stood at roughly $1.22 trillion, suggesting the pullback, while sharp, has not triggered a full-scale capitulation in market structure.
With the Fed explicitly tying its next policy move to labor and inflation data, traders will be watching upcoming CPI releases and Fed commentary closely. The June 5 selloff demonstrated that strong economic prints can rapidly shift rate expectations, and with them, risk appetite across both crypto and commodities.
Enforcement actions in the crypto space, such as a recent $100 million money laundering sentencing, add another layer of caution for market participants already navigating a hawkish macro backdrop. The near-term path for Bitcoin likely hinges on whether subsequent data confirms or softens the higher-for-longer rate outlook that now dominates market pricing.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
