Bitcoin (BTC) experienced a drop below $30,000, driven in part by the release of a robust U.S. ADP private employment report.
The report, which exceeded expectations, revealed the addition of 497,000 private-sector jobs in June, more than double the consensus forecast.
Data indicates that the pullback from the recent 13-month high of $31,500 coincided with the release of this significant economic data.
The blowout ADP private employment report caught markets off guard with its impressive results. The data revealed strong job growth, overshadowing a separate report from the Labor Department, which indicated modest labor market weakness.
The unexpected surge in private-sector jobs added to the positive sentiment surrounding the U.S. economy.
Following the release of the ADP report, Treasury yields experienced an increase. The two-year yield surged approximately 15 basis points to 5.118%, reaching its highest level since 2006.
The 10-year yield also rose by 11 basis points to 4.05%, marking its highest level since March. These movements in yields reflect market expectations of an extended rate hike campaign by the Federal Reserve.
The rise in yields suggests that traders anticipate the Federal Reserve to continue its rate hike campaign. Currently, fed funds futures traders see a 94% chance of a 25 basis point rate hike this month.
Additionally, market participants are now factoring in a 75% chance of three more rate hikes by the end of the year.
Since initiating its tightening cycle in March 2022, the Federal Reserve has raised rates by 500 basis points to the 5%-5.25% range, influencing various markets, including cryptocurrencies.