Bitcoin, Ethereum, Dogecoin Drop As Labor Market Remains Tight: Analyst Says Explosive King Crypto Rally Could Follow If SEC Approves Spot ETF

Major cryptocurrencies traded in the red on Thursday evening following the release of the U.S. ADP private employment report 

What Happened: The U.S. job market has been tight for a very long time and continues to show no indications of cooling down.

The ADP report delivered a significant surprise to the market, revealing an addition of 497,000 private-sector jobs in June. 

This figure surpassed the consensus forecast of 220,000 by more than double. In contrast, the Labor Department’s report indicated slight labor market weakness as it showed an increase in first-time filings for jobless claims to 248,000 last week, slightly exceeding the forecast of 245,000.

Nela Richardson, ADP's chief economist, said, "job creation surged in June, led by consumer-facing services. Leisure and hospitality, trade and transportation, and education and health services showed strong gains. But wage growth continues to ebb in these same industries, and hiring likely is cresting after a late-cycle surge."

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At the time of writing, the global crypto market capitalization stood at $1.17 trillion, a decrease of 1.56% over the last day. 

Stocks experienced a decline on Thursday as investors became more concerned about the state of the economy and the trajectory of interest rates due to better-than-expected jobs data.The S&P 500 closed at 4,411.59, reflecting a 0.79% decrease, while the Nasdaq Composite saw a drop of 0.82%.

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Analyst Notes: "Bitcoin appears to be facing some price barriers ahead of the $32,000 level.  Bitcoin's performance is gaining attention given some of the weakness that is emerging with global equities.  For the Bitcoin rally to continue, we will need to get confirmation that the SEC will grant permission for a spot-Bitcoin ETF in the US," wrote Edward Moya, Senior Analyst at OANDA, in a note seen by Benzinga.

According to crypto analyst Michael Van de Poppe, Bitcoin had a notable surge followed by a reversal, causing a reset in its price range. Currently, in order to regain positive momentum and reach new highs, Bitcoin needs to reclaim the $30.5K level. "Otherwise sub $29.5K is a trouble town and we’ll be looking at $28k."

InvestAnswers has released bullish price targets for Bitcoin (BTC) and Ethereum (ETH). In a video, the analyst shared  his belief that Bitcoin may reach $42,000 by April 2024. Notably, this prediction is backed by the analysis of the options market. InvestAnswers said the higher demand for Bitcoin’s call options compared to put options, which they consider a strong bullish signal.

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