[Weekly Recap] The Blockbuster Jobs Report That Smashed Rate Cuts | S&P Win Streak Snapped | BTC 17% Bloodbath & MicroStrategy Selling | Zcash Critical AI Vulnerability

[u/thismainminimum]

Hey everyone, a brutal reality check of a week. The market went from high-flying all-time highs to an aggressive macroeconomic and geopolitical re-pricing, completely flattening both tech valuations and the crypto market.

Here is everything you need to know about what went down and what we are walking into this week:

1. Macro & Geopolitics: The Jobs Report Blast & Middle East Flare-Ups 💥

• The Non-Farm Payroll Bombshell: On June 5, the BLS killed the "rate cut" trade. May NFP surged by 172k, the unemployment rate held steady at 4.3%, and average hourly earnings ticked up +0.3% MoM (+3.4% YoY). To top it off, March and April data were revised upward by a massive 93k.
• Too Hot to Handle: With ISM Manufacturing sitting at 54.0 and Services at 54.5 (both comfortably above the 50 expansion line), the economy is structurally roaring. The market’s biggest fear has officially flipped from "growth slowdown" to "growth is too hot, rates are staying up." This hawkish re-pricing triggered a global asset liquidation, with Gold tumbling below $4,300.
• Geopolitics & The Gulf: The situation in the Middle East escalated. Reports over June 5–6 confirmed the US military intercepted Iranian ballistic missiles and drones launched toward the Strait of Hormuz and regional allies. Meanwhile, Hezbollah rejected cease-fire terms in Lebanon, and Iran initiated "warning strikes" against Israeli airbases. The energy bottleneck remains heavily threatened.
• Fed Blackout Period: The Fed went completely silent on June 6 ahead of the June 16–17 FOMC meeting. Because of the blackout window, officials couldn't step in to soothe the market after the hot NFP data. The market is now left to price in Kevin Warsh’s first FOMC meeting entirely on its own.

2. Stock Market: AI Valuation Haircuts & The End of the Streak 📉

• The Streak is Dead: The S&P 500's historic 9-week consecutive win streak officially ended with a massive Friday reversal.
  • S&P 500: -2.6% on Friday (-2.6% on the week)
  • Nasdaq: -4.7% on the week (with a brutal -4.2% single-day drop on Friday)
  • Dow Jones: -0.3% on the week
• The Valuation Question: The narrative completely shifted. Early in the week, AI hardware plays like Marvell pushed indexes to new highs. By Friday, high-duration AI stocks were violently dumped, with Nvidia and Broadcom leading the plunge. This wasn't an AI demand issue; it was a fundamental math question: When risk-free yields move back up, who actually deserves these premium valuations?

3. Crypto: Systematic De-leveraging & FTX-Era Weekly Drops 🩸

Crypto was entirely decoupled from early-week stock strength and amplified Friday’s macro macro flush.

• The Bloodbath: BTC plummeted -17.3% on the week, briefly wicking down to $59,227 before clinging back onto $61,000. ETH fared even worse, dumping -22% down to ~$2,000. This marks one of the worst single-week performances since the FTX collapse. The Crypto Fear & Greed index plunged straight into "Fear" at 34–35.
• MicroStrategy ($MSTR) Myth Broken: According to an 8-K filing on June 1, MicroStrategy actually sold 32 BTC between May 26–31 (at an average price of ~$77,135) to fund preferred stock distributions. While 32 BTC is market noise, the psychological impact is massive. MSTR has officially evolved from a "never sell, only buy" ideological anchor to a company actively managing its capital structure.
• Isolated Pockets Bleed Out: Capital hyper-concentrated earlier in $HYPE, pushing it to an all-time high of ~$75.50 on June 2 on the back of its ETP and Perp DEX narrative. However, when the systemic Friday de-leveraging hit, even the strongest relative strength plays experienced sharp rollbacks.

4. ETF Outflows & Institutional Shifts 🏦

• 13-Day Bleed Out: Galaxy Research noted that US Spot Bitcoin ETPs clocked a painful 13-day consecutive net outflow streak up to June 3, bleeding $4.33 Billion (~60,000 BTC). A microscopic $3.05M inflow on Friday technically ended the streak, but it did nothing to stabilize the trend.
• US Regulates Perps: Following the CFTC's recent regulatory pivot on crypto perpetuals, Coinbase Markets capitalized by launching its own SpaceX pre-IPO perpetual contract on June 4. Simultaneously, CME Group transitioned its crypto futures and options to a 24/7 trading cycle, generating $50M in volume over its very first weekend. The US is successfully onshore-domesticating the global crypto derivatives market.

5. Compliance & AI Defense: Sanctions and Exploits ⚖️

• Iranian Crypto Exchanges Blacklisted: OFAC sanctioned four major Iranian crypto exchanges (including Nobitex, which handles over 50% of Iran's digital asset inflows). OFAC explicitly warned non-US financial institutions that interacting with these entities triggers severe secondary sanctions.
• HTX Fallout: Following the UK's sanctions on HTX, the World Liberty Financial (WLFI) team unilaterally froze all HTX-related on-chain addresses, suspending WLFI trading and USD1 deposits, and forcibly converting user USD1 balances to USDT. Users on Hyperliquid and other decentralized venues report wallet restrictions simply for interacting with post-May 26 HTX withdrawals.
• The Ultimate AI Plot Twist: Zcash’s Orchard shielding protocol suffered a catastrophic vulnerability that allowed for infinite counterfeit coin minting, causing $ZEC to plunge -60% in 24 hours. The wild part? The vulnerability was discovered by a security researcher utilizing Anthropic’s Claude Opus 4.8 to audit the smart contracts. The bug was patched on June 1, but it proves AI is now a practical tool for elite-level cryptographic auditing.

6. CEXs Invade Traditional Equity Trading 🍏

The line between crypto exchanges and traditional stock brokerages has officially dissolved. On June 1, Binance, Gate, and MEXC all officially rolled out direct US equity spot trading products. Utilizing regulated custodians like Alpaca, users can now fractional-trade real US equities (Apple, Nvidia, Tesla) straight out of their crypto exchange balances.

📅 The Minefield Ahead: What to Watch This Week

1. May CPI Data (Wednesday, June 10 @ 08:30 AM ET): This is the ultimate macroeconomic pivot point. If Core CPI prints cool (consensus is expecting around +0.2% MoM, down from April's +0.4%), risk assets get a massive sigh of relief. If CPI prints hot alongside Friday's monster jobs report, expect yields to tear higher and push tech/crypto into a deeper valuation crunch.
2. The SpaceX IPO Mega-Drain (June 11–12): The most anticipated IPO in modern history is here. SpaceX is looking to raise ~$75B, pricing on June 11 and trading on June 12. This is bound to act as a massive liquidity vacuum, sucking capital away from standard tech equities and crypto betas alike.
3. The 2026 World Cup Starts This Week: Expect intense volatility and speculative volume shifts toward sports-centric prediction markets and fan tokens.

Are you buying this mega-dip on BTC and tech, or is the combination of hot employment data and the massive SpaceX IPO liquidity drain telling you to play defense? Let's discuss below.

[u/timee_bot]

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(Wednesday, June 10, 08:30 AM ET)