Bitcoin and major altcoins traded under broad selling pressure on Wednesday. BTC was down 2.75% on the day at $66,809, while Ethereum fell 5.49%. Solana dropped 5.31% and BNB lost 6.11%, making them some of the notable decliners during the mid-session. The U.S. macro data released during the day did not directly create this picture; markets were already under pressure. However, the figures also failed to strengthen the case for a recovery.
According to ADP’s May private-sector employment report released on Wednesday, the U.S. economy added 122,000 new jobs last month. Economists surveyed by Reuters had expected 117,000, while April’s figure was revised down from 109,000 to 105,000. The number came in above expectations, but analysts avoided reading it as a sign of a strengthening labor market.
The sectoral breakdown offers a clearer picture of the increase. Education and health services accounted for nearly half of the growth alone, adding 57,000 new positions. Trade, transportation and utilities recorded an increase of 36,000. Meanwhile, the information technology sector and natural resources and mining saw net job losses.
Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics, said the current picture does not provide convincing evidence that the labor market is regaining momentum. Hiring intention indexes from NFIB and regional Fed surveys, along with the Conference Board’s job availability index, have weakened noticeably in recent months. The ADP report has historically been weak at predicting Friday’s BLS data, which limits its guiding impact on markets.
Indeed, the main focus is now on Friday. Economists expect nonfarm payroll growth to slow to 85,000 in May after April’s 115,000 increase. The unemployment rate is expected to remain unchanged at 4.3%.
Behind this picture is a labor market that was shaken last year by tariff-related uncertainty, a process that has largely been absorbed. However, the conflict involving the U.S., Israel and Iran is pushing commodity prices higher, while inflation pressure continues. In April, inflation recorded its fastest increase in three years. Against this backdrop, the market broadly expects the Fed to keep interest rates in the 3.50%–3.75% range and continue monitoring developments.
The JOLTS report released on Tuesday showed an increase in job openings in April, but that increase was concentrated in a single sector. Hiring declined, while layoffs also fell. This suggests that April’s relatively strong employment gain was driven not by new hiring, but by a low layoff rate.
PMI Data Also Released
The picture on the PMI side was even more mixed. According to S&P Global’s May data, the U.S. Composite PMI came in at 51.5, below the expected 51.7. The Services PMI fell to 50.7, while the previous reading and market expectation stood at 50.9. Both indexes remained above the 50 threshold that separates expansion from contraction, meaning growth technically continued. However, momentum kept weakening.
For crypto markets, this macro picture did not act as a direct trigger. Bitcoin was already trading 2.75% lower when the data arrived. Solana’s 10.38% weekly gain and Hyperliquid’s 19.76% weekly rise also show how mixed the broader picture remains. Weaker PMI data and a below-forecast services reading do not support risk appetite, while expectations that the Fed will not rush into rate cuts this year continue to act as a background factor behind ongoing fund outflows from crypto.
