U.S. Job Growth Slows 66% in May, Fueling Rate Cut Speculation

In May, the U.S. ADP Employment Report revealed a significant slowdown in job growth, adding only 37,000 jobs, far below the anticipated 110,000. This marked the lowest job growth in over two years, indicating a deceleration in the labor market. The data highlighted that businesses, particularly small enterprises, have scaled back on hiring due to the uncertainty surrounding Trump's policies, leading to a reduction in job openings.

Despite robust wage growth, the overall employment landscape remains weak, fueling market speculation of an economic slowdown and potential earlier rate cuts. Trump has intensified pressure on Powell to expedite rate reductions, asserting that the U.S. economy is lagging. Additionally, the market's probability of a rate cut in September has surged to 76.4%, according to the FedWatch tool.

Bitunix analysts have weighed in on the situation, suggesting that the weak employment data could provide short-term support for Bitcoin (BTC) to continue its rebound. Market attention is now focused on the upcoming non-farm payroll report scheduled for Friday. If this report also indicates a cooling labor market, it could further bolster expectations for a rate cut later in the year.

From a technical perspective, the short-term resistance level for BTC is set at $106,300, with a potential challenge to $108,500 upon a breakthrough. The support range is between $104,000 and $103,500. Analysts recommend observing the market closely and leaning towards long positions, awaiting further guidance from the non-farm payroll report.