Bitcoin hit a 13-month high on Thursday (July 6), driven by comments from BlackRock CEO Larry Fink and growing institutional demand for Bitcoin.

According to Coin Metrics data, Bitcoin fell 0.7% to $30,275.18. Earlier in the day, it rose to about $31,450, reaching its highest level since June 2022. However, the subsequent release of the US ADP private employment data exceeded expectations, increasing investors' concerns about interest rate trends, and Bitcoin gave up its gains.

The ADP report unexpectedly grew at a breakneck pace, with 497,000 new private sector jobs added in June, far exceeding expectations for 220,000. The data masked a slightly weaker labor market report from the Labor Department, which showed that initial jobless claims rose by 248,000 last week, higher than the 245,000 expected.

Treasury yields continued to rise after the ADP report, with the two-year yield rising about 15 basis points to 5.118%, the highest level since 2006, according to charting platform TradingView. The 10-year yield rose 11 basis points to 4.05%, the highest level since March this year.

The two-year note is more sensitive to short-term interest rate expectations. Its new multi-year high suggests traders expect the Fed to extend its rate hikes. In fact, traders of federal funds rate futures now see a 94% chance of a 25 basis point rate hike this month, and the market now sees a 75% chance of three more rate hikes before the end of the year. Before pausing last month, the Fed launched its so-called tightening cycle in March 2022 and has since raised interest rates by 500 basis points to a range of 5%-5.25%. Tight monetary policy has been one of the factors behind the cryptocurrency market's decline over the past 18 months.

“Prices remain under pressure,” said Noelle Aitchison, economist and author of the Crypto is Macro Now newsletter. “Over the past few weeks, we have often seen prices encounter selling pressure resistance around $31,000. This will eventually be broken, but in the meantime traditional markets seem to have entered a more cautious mood - we can’t assume Bitcoin will handle this easily yet.”

Bitcoin has risen steadily since June 15, when BlackRock, the world's largest asset manager, first filed to launch a spot Bitcoin ETF. According to CryptoQuant data, the amount of Bitcoin held by institutions through trusts, ETFs and funds has increased sharply since then, reaching the highest level in more than a year, and Bitcoin options interest has also returned to pre-FTX levels.

“Market participants have responded positively to traditional financial institutions entering bitcoin — a trend that further validates the validity of an asset once thought to be a passing fad,” said Michael Sonnenschein, CEO of Grayscale, which is awaiting approval for its Bitcoin Trust to convert into an ETF.

“More importantly, recent news of new institutional entry into Bitcoin further underscores the asset class’s staying power, with many investors viewing it as the investment opportunity of a lifetime,” Sonnenschein added.

Insiders reveal: Taylor Swift reached a $100 million deal with FTX

After months of discussions, Taylor Swift signed and agreed to a sponsorship deal with bankrupt cryptocurrency exchange FTX, before FTX executives decided not to proceed with the deal, a person familiar with the matter told CNBC.

The nature of the agreement, which was previously reported by The New York Times on Thursday, contradicts public information about the nature of the failed FTX-Swift deal. In a public statement, a class action lawyer praised Swift’s due diligence and said the artist asked the exchange to explain why its listed assets were not considered unregistered securities.

But Swift eventually agreed to the deal, a person familiar with the matter told CNBC. The signed agreement was sent to FTX founder Sam Bankman-Fried’s email inbox, but no response was received in a few weeks, the person told CNBC. Ultimately, a group of FTX executives convinced Bankman-Fried to abandon the $100 million deal, the person added.

Three other people familiar with the matter told The New York Times that Swift’s team signed a deal with FTX after six months of negotiations, but Bankman-Fried ultimately canceled the agreement.

The person requested anonymity due to ongoing federal and bankruptcy proceedings. The Financial Times first reported the existence of the FTX-Swift partnership.

FTX filed for bankruptcy protection in November 2022. Bankman-Fried faces multiple federal charges, including fraud and campaign finance violations. Three other FTX executives have pleaded guilty to multiple federal charges and are cooperating with the government's prosecution of Bankman-Fried. Thanks for watching. If you like it, please like and follow us. See you next time! #BTC #ETH