The crypto market is experiencing a notable upward momentum as investors react to shifting expectations around U.S. labor market performance and potential Federal Reserve rate cuts. With Bitcoin touching a 24-hour high near $110,000 and broader digital assets gaining across the board, market sentiment has been buoyed by anticipation surrounding the upcoming non-farm payroll report and evolving macroeconomic signals.
Market Reaction to Fed Rate Cut Expectations
Growing speculation that the U.S. labor market may be weakening further has reignited hopes for a Federal Reserve interest rate cut as early as July. Although current odds suggest only a 25.3% probability of a rate reduction at the July 30 policy meeting—according to the CME FedWatch Tool—expectations are strong for easing in September, with a 95.1% chance of at least a 25-basis-point cut.
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The Federal Reserve has historically aligned its monetary policy decisions with key economic indicators, particularly employment data and inflation trends. With inflation still above target and job growth showing signs of slowing, markets are closely watching whether the central bank will prioritize inflation control or respond to softening labor conditions.
Key Labor Market Indicators in Focus
The U.S. Bureau of Labor Statistics is set to release the June Employment Situation report, a critical dataset that includes:
- Non-farm payroll additions
- Unemployment rate
- Average hourly earnings (monthly and annual)
- Labor force participation rate
- Sector-specific employment trends
Economists forecast that non-farm payrolls will increase by 110,000 jobs in June, down from 139,000 in May. The unemployment rate is expected to rise slightly to 4.3%, up from 4.2%, while month-on-month wage growth is projected to ease to 0.3% from 0.4%. Year-over-year wage growth is expected to hold steady at 3.9%.
These figures could play a pivotal role in shaping the Fed’s next move. A softer-than-expected report may strengthen the case for earlier rate cuts, which typically favor risk-on assets like cryptocurrencies.
Crypto Market Surge Amid Risk-On Sentiment
In the 24 hours leading up to the jobs data release, the overall cryptocurrency market capitalization climbed by 2.4% to reach $3.39 trillion. Trading volume spiked more than 32% overnight, hitting $134 billion—a clear signal of heightened investor engagement.
Bitcoin Rebounds Toward All-Time High
Bitcoin (BTC), the flagship cryptocurrency, rose 1.78% to trade at $109,695, just 2% below its all-time high of $111,970 set on May 22. Over the past day, BTC fluctuated between $107,225 and $110,294. With a dominant 64.4% share of the total crypto market, Bitcoin has gained 2.3% over seven days and 4.2% in the last month. Year-to-date, BTC is up 17.5%.
Notably, U.S.-based spot Bitcoin ETFs saw significant inflows, with $408 million entering these products on Thursday—up sharply from $342 million in outflows the previous day. The Fidelity Wise Origin Bitcoin Fund (FBTC) led the surge with $184 million in new investments.
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Ethereum and Altcoins Show Strong Momentum
Ethereum (ETH) outperformed with a 5.6% overnight gain, reaching $2,617. Over the past week, Ether has climbed 6.1%, reducing its year-to-date losses to just over 22%. Despite this rebound, ETH remains 47% below its peak price. The 24-hour trading range was between $2,433 and $2,617.
While Ethereum-based spot ETFs saw outflows of $2 million on Wednesday—down from $41 million in inflows the day before—the broader ecosystem continues to show resilience amid improving market sentiment.
Altcoin Market: Meme Coins Lead Gains
Mid and small-cap cryptocurrencies also posted strong gains:
- XRP surged 4.7% to $2.29
- BNB edged up 0.7% to $662
- Solana (SOL) rose 3.8% to $155
- TRON (TRX) gained 0.89% to $0.2841
- Dogecoin (DOGE) jumped 7.7% to $0.1740
- Cardano (ADA) climbed 7.9% to $0.6040
Meme coins were among the top performers:
- Bonk (BONK) led with a 16.7% gain
- Fartcoin (FARTCOIN) rose 15.7%
- Dogwifhat (WIF) gained over 14%
Collectively, meme-based cryptocurrencies surged more than 7.5% in the past 24 hours, reflecting renewed appetite for high-risk, high-reward digital assets.
On the flip side, only two top 100 cryptocurrencies posted losses exceeding 1%:
- Four (FORM) dropped 3.5%
- Maple Finance (SYRUP) fell 1.1%
Core Keywords Driving Market Trends
This market movement underscores several core themes shaping investor behavior:
- Cryptocurrency market trends
- Bitcoin price prediction
- Ethereum performance
- Fed rate cut expectations
- Non-farm payroll impact
- Spot Bitcoin ETF inflows
- Meme coin rally
- Crypto trading volume
These keywords reflect both technical and macroeconomic drivers influencing short-term price action and long-term investment strategies.
Frequently Asked Questions (FAQ)
Q: Why are cryptocurrencies rising before the jobs report?
A: Investors anticipate weaker labor data could prompt the Federal Reserve to cut interest rates sooner, which historically boosts risk assets like crypto.
Q: How does the non-farm payroll affect Bitcoin?
A: Strong job growth may delay rate cuts, pressuring Bitcoin. Conversely, weak payroll numbers increase easing expectations, often triggering BTC rallies.
Q: What does a Fed rate cut mean for crypto markets?
A: Lower interest rates reduce returns on traditional assets like bonds, making high-growth investments such as cryptocurrencies more attractive.
Q: Are spot Bitcoin ETFs influencing price movements?
A: Yes—significant inflows into U.S. spot Bitcoin ETFs signal strong institutional demand, adding upward pressure on BTC prices.
Q: Why are meme coins surging again?
A: Meme coins often rally during periods of positive market sentiment due to speculative trading and social media momentum.
Q: Is Ethereum still underperforming compared to Bitcoin?
A: While ETH has lagged BTC in recent all-time highs, its recent gains and ecosystem developments suggest improving momentum.
Conclusion
As markets await definitive signals from the June employment report, cryptocurrencies are capitalizing on dovish monetary policy expectations and easing trade tensions. With Bitcoin nearing $110,000 and altcoins showing broad strength—especially in the meme sector—the stage is set for continued volatility and opportunity.
Investors should remain alert to Friday’s labor data release, which could either confirm rate cut expectations or extend the Fed’s wait-and-see approach. Either outcome will have immediate implications across digital asset markets.
By understanding the interplay between macroeconomic indicators and crypto market dynamics, traders can better navigate this evolving landscape—with tools and insights that empower smarter decisions.