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BTC Falls to $30.4K Amid Jobs Report, Rate Hike Rumors

Bitcoin (BTC) experienced a sharp decline to $30,470 early Thursday morning following the release of a blowout U.S. ADP private employment report, which exceeded expectations. The drop comes after BTC reached a 13-month high of $31,500. 

The ADP report, published Wednesday, revealed the private sector added a staggering 497,000 jobs in June. This figure more than doubled the consensus forecast of 220,000, catching markets off guard. Additionally, markets are factoring in a 75% chance of three additional rate hikes by the end of the year. 

The Federal Reserve initiated its tightening cycle in March 2022 and has since raised rates by a total of 500 basis points. The tightening monetary policy has been one of the contributing factors to the crypto market downturn over the past 18 months.

Bitcoin’s price decline serves as a reminder that digital currencies can be influenced by macroeconomic factors and market sentiment beyond their inherent qualities.