Top altcoin to avoid before this week's U.S. jobs data

The crypto market is under pressure as many altcoin unlock events and upcoming employment data from the United States dominate investors' discussions.

Notably, over 369 million dollars worth of tokens are expected to be unlocked between September 2 and June 9. At the same time, although the new jobs data will be released on June 6, this week is shaping up to be a crucial week for altcoin and Bitcoin.

Accordingly, market participants are weighing risks, especially for lesser-known tokens, and are advised to steer clear due to pessimistic sentiment.

Altcoin unlock events cause fear about TAIKO and NEON

This week, several altcoins are set to unlock a large amount – a move that often leads to price declines.

The biggest concern comes from TAIKO, which will unlock 65.86% of the total supply worth $81.55 million. Such a rapid release plan into circulation could lead to a price drop if buyers do not absorb the new supply in time.

In previous cases, similar unlocking events have pushed prices down while market demand remained low.

NEON is also on the watchlist. Although a smaller portion of the total supply (, 48%), is being unlocked, the total value is still significant, reaching 53.19 million dollars. Like TAIKO, the risk here is that sellers may outnumber buyers, creating a bearish trend.

Another altcoin is ENA, which has issued $212.5 million, but it may face less immediate pressure as it only accounts for 3.2% of the supply.

Overall, altcoins are under pressure as $369 million worth of tokens are unlocked and U.S. job data raises concerns about the crypto market.

Source: Wu BlockchainMajor assets in the market such as Solana (SOL), Avalanche (AVAX) and World (WLD) may continue to unlock tokens daily. For example, SOL issues $73.67 million in tokens every day.

Although these may seem normal, they contribute to increasing supply. If investor demand remains weak for a long time, the market will become more vulnerable to losses.

US employment data report may trigger market moves

This week, the U.S. employment data scheduled for release on June 6 is another important factor for investors.

According to MarketWatch, the U.S. economy added 125,000 jobs in May, down from 177,000 in April. However, the unemployment rate remains at 4.2%.

These numbers indicate that the labor market is cooling down, and some view this as a sign that the Federal Reserve (Fed) may take a softer stance on interest rates. A softer or "easing" stance from the Fed often supports risk assets like Bitcoin and altcoin.

If employment data confirms a slowdown, it could increase the likelihood of interest rate cuts or at least maintaining the current interest rates. That signal will push cryptocurrency prices higher.

On the other hand, if the data surprises with significantly higher job growth, the Fed may decide to tighten policy, putting additional pressure on the market.

Meanwhile, the PCE inflation in the United States has cooled down for the second month to 2.1% from 2.3% in the previous month.

Experts advise caution in the context of the unstable crypto market

With both the unlocking of tokens and the U.S. jobs report, the overall sentiment in the crypto market remains cautious. A comment under Wu Blockchain's post points out that many altcoins are struggling to find upward momentum.

This tug-of-war is partly due to the expected increase in token supply and partly due to hesitation ahead of economic data. Experts believe that while it may recover if the Fed responds to weak employment data with supportive measures, the short-term outlook remains uncertain.

The combination of unlocking strength and macroeconomic events is not something that traders can overlook. Currently, tokens like TAIKO and NEON are considered risky, and some investors advise waiting for more stability before entering such positions.

Dinh Dinh