The U.S. private sector employment fell by more than 4% in June—the largest decline since March 2023.
Bitcoin gained relief, continuing its rebound momentum, and began to trap late short positions.
$108,000 remains a recent resistance level for BTC prices.
Bitcoin (BTC) reached $108,000 at the opening of Wall Street on July 2, triggered by a significant surprise in U.S. employment data that caused volatility.
Data from Cointelegraph Markets Pro and TradingView shows that as of the time of writing, BTC/USD was up 2% on the day.
The increase coincided with an unexpected drop in private sector employment data, with June figures falling short by 33,000 compared to expectations, marking the lowest level since March 2023. The company that compiles this data, Automatic Data Processing (ADP), had estimated a growth of nearly 100,000 in its national employment report.
"Although layoffs remain rare, hiring hesitancy and reluctance to replace departing employees led to job losses last month," commented ADP Chief Economist Nela Richardson in the accompanying press release.
Ahead of the U.S. non-farm payroll data set to be released on July 3, crypto market commentators remained optimistic. They noted that a weak labor market increases the likelihood of the Federal Reserve (Fed) cutting interest rates sooner rather than later—this is a key source of liquidity for Bitcoin, altcoins, and risk assets.
"The likelihood of a Fed rate cut in July is increasing…" wrote Andre Dragosch, Head of European Research at crypto asset management firm Bitwise, in a response on the X platform.
As Cointelegraph has continuously reported, the resistance from Fed officials against rate cuts has sparked opposition from Washington, including U.S. President Trump, who this week called for rates to be lowered to 1% or lower.
The latest data from the CME FedWatch tool shows that market sentiment has not changed due to the ADP data, and the Fed's September meeting remains a popular choice for the next rate cut announcement.
Among traders, attention has once again turned to exchange order book liquidity.
Monitoring resource CoinGlass shows that the surge towards $108,000 has begun to liquidate a large number of short positions.
Prior to this event, well-known X commentator TheKingfisher described $108,000 as one of several "magnets" around the spot price.
"Below the current price, there are significantly fewer long liquidations until the $104,000-$105,000 range, showing a clear imbalance. This setup means that if the price breaks above $107,000, there will be stronger upward pull," he told his X followers.
Renowned analyst Matthew Hyland described the BTC price action so far this week as a "liquidity grab," with shorts now paying the price.
BTC liquidity grab and now shorts trapped: pic.twitter.com/pJj8tFtiFL
Despite an increasing number of people predicting new all-time highs in July, $108,000 will continue to act as a local resistance level for BTC/USD.
Related: Standard Chartered expects Bitcoin (BTC) to hit a new all-time high of $135,000 in the third quarter.
This article does not contain investment advice or recommendations. Every investment and trading involves risks, and readers should conduct their own research when making decisions.
Original article: “U.S. Employment Data Sees Largest Drop in Two Years, Bitcoin (BTC) Soars to $108,000, Squeezing Shorts”
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