Bitcoin 
$78,415 has seen a 1% decline over the past 24 hours, dipping to $105,200 as investors reduce risk ahead of critical U.S. employment data. Ethereum 
$2,475 has similarly dropped by 2.5%, reaching $2,400. Across the largest 30 cryptocurrencies, a downturn of up to 3% is evident. Vincent Liu from Kronos Research has commented on this situation, pointing out that weak liquidity reinforces a “wait-and-see” environment. Currently, the cryptocurrency market is closely watching the employment data set to be released on July 3 and July 4, which includes unemployment claims and non-farm payroll data.
Cryptocurrencies Face Market Turbulence
As of the preparation of the news, Bitcoin is trading slightly above $106,000 following its recent decline, albeit with low volume. Analyst Nick Ruck has highlighted the potential for the U.S. Senate-approved spending package, associated with Trump, to exacerbate pressure on risk assets by potentially expanding the budget deficit.
The employment data, including unemployment claims and non-farm payrolls, will also be crucial for shaping the future steps of the Federal Reserve (Fed). Fed Chair Jerome Powell reaffirmed at the European Central Bank forum that decisions would continue to rely on incoming data, but he did not provide a specific timeline.
Peter Chung from Presto Research has analyzed order books, indicating that while early liquidity signals might improve, the current downturn is still limited compared to traditional markets.
Market Pressure from Trump’s Spending Package
The spending package passed by the U.S. Senate on Tuesday night forecasts trillion-dollar tax cuts and reductions in the public health insurance program. Unfortunately for the crypto community, the expected exemption clause was removed from the draft. Ruck suggests that investors will remain cautious until the regulation is voted on in the House of Representatives, limiting transaction volumes amid this uncertainty.
Liu notes that the 3% decline in the top 30 cryptocurrencies is indicative of typical position-lightening ahead of data releases. Should liquidity recover, prices may quickly respond. Analysts also emphasize that a 1% movement in Bitcoin corresponds to about 0.2% volatility in the stock market.
