Key Takeaways
- U.S. private sector employment fell by over 4% in June—the steepest decline since March 2023.
- Bitcoin capitalized on the downturn, extending its rebound and trapping late short positions.
- $108K remains a near-term resistance level for BTC.
Bitcoin Rallies Amid Weak U.S. Labor Data
Bitcoin (BTC) hit $108K at the Wall Street opening on July 2, fueled by unexpected volatility from U.S. employment data. The BTC/USD pair rose 2% intraday, with the rally coinciding with a surprising dip in private-sector job growth. June figures fell 33K short of expectations, marking the lowest reading since March 2023.
ADP Chief Economist Nela Richardson noted:
"While layoffs remain rare, hiring hesitancy and reluctance to replace departing employees led to last month’s job losses. However, slowing hiring hasn’t impacted wage growth."
With the U.S. nonfarm payroll report due July 3, crypto analysts remain optimistic. Weak labor data raises the likelihood of earlier Federal Reserve rate cuts—a potential liquidity boost for Bitcoin and risk assets.
Andre Dragosch, Head of European Research at Bitwise, commented:
"The case for a July Fed rate cut is growing stronger..."
FedWatch data still points to September as the most probable timing for the next rate cut.
BTC Price Breaks Critical "Upward Pull" Level
Traders focused on exchange order-book liquidity as the surge toward $108K began liquidating significant short positions. Analyst TheKingfisher described $108K as one of several "magnets" around spot prices, highlighting stronger upside potential above $107K.
Matthew Hyland characterized BTC’s recent price action as a "liquidity grab," with shorts now trapped. While some predict new all-time highs in July, $108K remains a local resistance level.
👉 Why Institutional Investors Are Flocking to Bitcoin
FAQ
Q: What caused Bitcoin’s sudden surge to $108K?
A: Weak U.S. employment data and subsequent short squeezes drove the rally.
Q: How does labor data affect Bitcoin’s price?
A: Poor job growth raises expectations for Fed rate cuts, increasing liquidity for crypto markets.
Q: Is $108K a sustainable resistance level?
A: While near-term resistance is strong, breaking this level could trigger further upside.