Bitcoin Retreats to $30.6K as Blowout ADP Report Strengthens Fed Rate Hike Bets
Traders now see a 94% chance of the Fed raising rates by 25 basis points later this month.
Bitcoin () fell to $30,600 soon before press time, with part of the pullback from the 13-month high of $31,500 happening after a blowout U.S. ADP private employment report hit the wires at 12:15 UTC, according to CoinDesk data.
The ADP report surprised markets in a big way to the upside, showing 497,000 private-sector jobs added in June, more than double the consensus forecast for 220,000. The data overshadowed a report by the Labor Department that showed modest labor market weakness, with first-time filings for jobless claims rising 248,000 last week, ahead of the forecast for 245,000.
Treasury yields extended an early rise after the ADP report, with the two-year yield jumping about 15 basis points to 5.118%, the highest since 2006, according to charting platform TradingView. The 10-year yield added 11 basis points to 4.05%, its highest level since March.
The two-year note is more sensitive to short-term interest rate expectations. Its rise to fresh multi-year highs suggests traders see the Fed extending its rate hike campaign. Indeed, fed funds futures traders now see a 94% chance of a 25 basis point rate hike this month, and markets are now factoring in a 75 chance of three additional rate hikes by the year's end. Before a pause last month, the Fed kicked off its so-called tightening cycle in March 2022 and has since raised rates by 500 basis points to the 5%-5.25% range. The tighter monetary policy has been among the factors for the swoon in crypto markets over the past 18 months.
Stock traders reacted negatively to this morning's ADP news as well, with futures tied to the SP 500 trading 0.9% at press time and Nasdaq futures lower by 1.1%. Gold traded 0.5% lower for the day at $1,905 per ounce and the dollar index erased early losses and traded unchanged on the day at 103.24.
Edited by Stephen Alpher.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ethereum Updates Today: Vitalik Buterin: Privacy Should Be Considered Digital Hygiene, Not an Exclusive Privilege
- Ethereum co-founder Vitalik Buterin donated 256 ETH ($800,000) to privacy-focused messaging platforms Session and SimpleX, advancing metadata privacy in digital communication. - The platforms use decentralized infrastructure and avoid centralized identifiers, addressing vulnerabilities in traditional messaging systems through unique approaches like service nodes and user-controlled servers. - Buterin's move counters EU regulatory pressures on encrypted messaging, emphasizing privacy as a fundamental righ
Bitcoin Latest Updates: Severe Fear Index: A Sign of Impending Crypto Market Rebound?
- Alternative Data's Crypto Fear & Greed Index rose to 20, still reflecting extreme fear despite slight optimism, driven by volatility, volume, and social metrics. - Bitcoin fell 30% from October peaks, with $3.5B ETF outflows and $800M stablecoin exits worsening liquidity risks amid macroeconomic uncertainty. - Bitget CEO Gracy Chen notes extreme fear often precedes market bottoms, citing potential Fed rate cuts (80% priced) as a catalyst for risk-on sentiment. - Altcoins like Kaspa and Ethena saw gains f
SEC Investigates Crypto Company Connected to Trump for Delayed Disclosures and Management Issues
- SEC investigates Alt5 Sigma over delayed CEO suspension disclosure and $1.5B token swap linked to Trump-backed World Liberty Financial. - Discrepancies in reporting a six-week delay in publicizing Peter Tessopoulos' suspension raise compliance concerns and triggered an 83% stock plunge. - Firm's ties to Eric Trump and $500M transfers to Trump-linked entities amplify scrutiny amid allegations of money laundering facilitation. - Executive dismissals without misconduct claims and governance turmoil highligh
Dogecoin News Today: Dogecoin ETFs Struggle to Boost Prices, Underscoring Difficulties in the Altcoin Market
- Dogecoin ETFs (BWOW, GDOG) failed to trigger price recovery, with GDOG's $1.4M day-one volume far below $12M forecasts. - Despite institutional interest in DOGE (7th-largest crypto at $22B), indirect exposure structures lack regulatory protections and face volatility risks. - Technical analysis shows DOGE forming bullish patterns near $0.15, but ETF-driven inflows remain insufficient to break $0.155 resistance. - Altcoin ETFs face uneven reception: Solana/XRP products outperformed DOGE, highlighting chal
Trending news
MoreCrypto prices
More
