The crypto market ticked higher on Thursday after U.S. employment data came in better than expected and a new trade agreement with Vietnam was announced.

Bitcoin (BTC) is up 2% on the day and is currently changing hands at $110,000. Ethereum (ETH) surged nearly 7% to $2,620. Meanwhile, Solana (SOL) jumped 3% $153, and XRP rose nearly 5% to $2.29.

The total crypto market capitalization remained flat at $3.49 trillion over the past 24 hours, while leveraged liquidations totalled $377 million, according to CoinGlass. BTC led the liquidations with nearly $126 million, followed closely by ETH at $120 million.

U.S. spot Bitcoin exchange-traded funds (ETFs) recorded $407 million inflows on July 2 – erasing the $342 million recorded in outflows on July 1. Meanwhile, spot ETH ETFs experienced $1 million in outflows, according to SoSoValue data.

The market’s continued positive momentum comes as June’s non-farm payrolls (NFP) beat expectations, rising by 147,000, compared to the 110,000 market analysts predicted. A higher-than-expected reading indicates that the labor market remains resilient despite recent macroeconomic turbulence, in the form of President Trump’s ongoing trade war.

The unemployment rate also dropped to 4.1%, according to the Bureau of Labor Statistics, down from the 4.2% recorded in May. Analysts had anticipated June’s unemployment rising to 4.3%.

Gold also ticked lower to $3,320 following the jobs data, while the U.S. dollar strengthened slightly.

Interestingly, payroll processor ADP on Wednesday reported a decline of 33,000 jobs in June, compared to experts’ expectations for an increase of 121,000. It is the first negative ADP reading since 2023.

The surprising data even led traders to increase expectations of a Federal Reserve rate cut in July, with the probability rising to 25.3%, according to Bitunix analysts. Those odds have since plummeted to less than 5% after the NFP release, according to CME Fedwatch.

“Weak ADP data strengthens expectations of a Fed rate cut, creating a short-term tailwind for risk assets,” Bitunix analysts said in a statement shared with The Defiant. “Pay close attention to today’s non-farm payroll and initial jobless claims reports for confirmation of the broader market trend”.

“Bad jobs data is good news if you’re betting on rate cuts,” Doug Colkitt, founding contributor, Fogo, echoed. “Traders are recalibrating for a more dovish Fed, and crypto – especially Bitcoin – is front-running that narrative. We’re also seeing signs of short squeezes and thin weekend liquidity adding fuel to the fire.”

Investor sentiment was also boosted by President Trump announcing that the U.S. had reached a new trade agreement with Vietnam on July 2. The deal outlines a 20% tariff on Vietnamese goods and a 40% tariff on items classified as “transshipped.”

The decision has received mixed reactions from experts, with some describing it as an attempt to pressure trade partners into accepting tougher U.S. terms. The New York Times reported that Trump’s move could be pressuring other countries in the region to limit China’s influence in their supply chains.

“The Trump administration is saying, ‘We need to see strategic decoupling if you are going to be a trade partner with the U.S.,’” Steve Okun, chief executive of APAC Advisors, a geopolitical consulting firm, told The Times earlier today. “The question is, will countries agree to that?”