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 $1,905 per ounce and the dollar index erased early losses and traded unchanged on the day at 103.24.
Edited by Stephen Alpher.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Cardano Latest Updates:
- BullZilla ($BZIL) emerges as top presale with 100x return potential via 24-stage burn mechanism and $0.00527 listing price projection. - Cardano (ADA) signals 60% price surge with golden cross pattern, while Monero (XMR) dominates privacy sector at $306.74 amid heightened surveillance. - Institutional interest shifts toward utility-deflationary projects like BullZilla and MoonBull ($MOBU), which mirrors BZIL's model with 9,256% ROI potential. - November 2025 marks critical inflection point as $19B Octobe
Ferrari’s Approach to Tokens: Blending Racing Heritage and Cryptocurrency to Strengthen Hyperclub Member Loyalty
- Ferrari launches Token 499P, a blockchain asset granting Hyperclub members exclusive auction access to racing cars. - The token, limited to 100 units, enables peer-to-peer trading and aligns with luxury brands' crypto adoption trends. - Partnering with Conio under EU MiCA regulations, Ferrari aims to deepen loyalty while capitalizing on $3.3T crypto market growth. - Analysts predict $10B in tokenized luxury assets by 2030, positioning Ferrari as a pioneer in merging motorsport heritage with digital innov
Ethereum Update: Major Investors Anticipate Recovery as $3,800 Level Remains Intact
- Ethereum (ETH) shows rebound potential near $3,800 support, with ETF inflows reversing recent outflows and institutional demand rising. - Technical analysis highlights $3,800 as critical support and $4,000 as a key breakout threshold for a $4,200 recovery target. - Institutional confidence grows via BlackRock's $110M ETF purchase and whale accumulation, while Fed rate cuts and the Fusaka upgrade add macro support. - Market fear (Fear & Greed Index at 32) and tightening ETH supply from staking reinforce b
Blockchain Connects with Traditional Finance as Australia Issues Its Inaugural Tokenized Government Bonds
- Australia completes first tokenized sovereign bond via blockchain partnership, enhancing liquidity and transparency in government debt markets. - Tether plans $15B-profit USAT stablecoin launch in December 2025, compliant with U.S. GENIUS Act and backed by Anchorage Digital. - Tether's $183B stablecoin dominance drives $20B funding talks, valuing firm at $500B amid expanding U.S. market partnerships. - U.S. regulatory shifts and blockchain adoption blur traditional-digital finance lines, redefining infra
Trending news
MoreCrypto prices
More
