The market observed a significant uptick following the release of the ADP employment data, a critical indicator for labor market trends. Bitcoin 
$91,081 surged beyond $109,500, marking a pivotal moment post the Vietnam agreement. Now, a closing above $109,000 could rekindle the risk appetite in altcoins. What were analysts predicting before this rise?
Why Did Cryptocurrencies Rise?
Two primary factors are attributed to this upward trend. Firstly, the ADP data hinted at a loosening labor market. If the Federal Reserve intends to cut interest rates, two conditions could prompt this move: limited tariff impact on inflation and a softening labor market. The ADP data provided a crucial signal ahead of the major employment figures due tomorrow, echoing Fed member Waller’s call to reduce rates in July before labor conditions worsen. The Vietnam tariff agreement was another significant development.
A shared graph by TKL underscored the ADP data insights, stating that the number of people voluntarily leaving their jobs in May decreased by 151,000, reaching a low of 704,000 since November 2020. This marked the second-largest monthly decline since 2020.
“Consequently, the rate of job resignations in total employment fell by 2 points to 9.8%, reaching the lowest point since May 2021. Over the last six months, this rate dropped by 4 points. Such rapid declines were rare outside recession periods in the past. In other words, owing to economic uncertainties, Americans have become more cautious about job switches. The job market is deteriorating.”
OP Coin and Predictions
Poppe noted a bullish divergence for OP Coin today, feeling vindicated with the general market recovery. The analyst anticipates the OP Coin price in BTC pairing to rebound from the bottom. Similar expectations exist for many altcoins, which have mostly depreciated in BTC pairs over the months.
“There’s still a strong bullish divergence in OP, and I believe it will hold. There’s no confirmation yet; let’s see what action we can take.”
Yoddha highlighted the rise between the halving and today, suggesting more gains should be seen. It’s been 450 days since the block reward halving, and BTC is just 70% above its previous peak. This figure was much higher in the last cycle.
