Bitcoin Surges 2% to $108,000 as US Jobs Drop 4%

Bitcoin (BTC) experienced a significant surge, reaching $108,000 at the July 2 Wall Street open. This spike was triggered by a substantial decline in US private-sector jobs, which fell by more than 4% in June, marking the largest drop since March 2023. The data, compiled by management firm Automatic Data Processing (ADP) in its National Employment Report, revealed a decrease of 33,000 jobs, far below the estimated increase of nearly 100,000. This unexpected retraction in employment numbers sparked volatility in the market, with BTC/USD rising by 2% on the day.

According to ADP chief economist Nela Richardson, the slowdown in hiring was due to a hesitancy to hire and a reluctance to replace departing workers, leading to job losses. However, she noted that the slowdown in hiring has yet to disrupt pay growth. This labor market weakness increased the odds of Federal Reserve interest-rate cuts coming sooner rather than later, which is a key source of liquidity injections for Bitcoin, altcoins, and risk assets. Crypto market commentators were optimistic ahead of the US nonfarm payrolls data, due for release on July 3.

Among traders, attention focused on exchange order-book liquidity. The push to $108,000 began to liquidate a large cloud of short positions, as revealed by data from monitoring resource CoinGlass. Popular X commentator TheKingfisher had described $108,000 as one of several “magnets” surrounding spot price, noting that below the current price, long liquidations were notably lighter until the 104,000-105,000 range. This setup implied a stronger upward pull if the price broke above 107,000. Popular analyst Matthew Hyland described the week’s BTC price action so far as a “liquidity grab,” with shorts now paying the price.

Despite growing predictions of new all-time highs coming in July, $108,000 remains a near-term BTC price resistance level. This event highlights the sensitivity of Bitcoin to macroeconomic factors, particularly employment data, and the potential for significant price movements in response to unexpected economic developments. The liquidation of short positions and the upward pull on the price indicate a bullish sentiment among traders, who are optimistic about the potential for further gains in the near term.