Story
Bitcoin Climbs Above $62,000 as ETF Inflows and Softer U.S. Jobs Data Boost Sentiment
Summary
The leading cryptocurrency is on track for a weekly gain after U.S. labor market data eased fears of Federal Reserve rate hikes and spot Bitcoin ETFs broke a 10-day streak of withdrawals.
Bitcoin rose above the $62,000 mark on Friday, positioning the digital asset for a weekly gain as improving market sentiment drew buyers back. The recovery was driven by softer-than-expected U.S. labor market data and a significant reversal in fund flows for spot Bitcoin exchange-traded funds (ETFs).
By 08:49 ET (12:49 GMT), Bitcoin was trading up 1.9% at $62,010.0, according to Investing.com data. The move marks a notable rebound from lows under $58,000 seen earlier in the week and puts the cryptocurrency on pace for a weekly rise of approximately 3%.
Economic Data and ETF Flows Fuel Rebound
Two key factors appear to be supporting the price recovery. First, recent U.S. jobs data pointed to a cooling labor market, which has tempered expectations that the Federal Reserve will pursue a near-term interest rate hike. Lower borrowing costs typically improve liquidity and support investor appetite for risk-sensitive assets, including cryptocurrencies.
Second, demand for U.S. spot Bitcoin ETFs has resumed after a prolonged period of withdrawals. According to data from SoSoValue, these funds recorded net inflows of $221.7 million on July 2, ending a 10-day streak of consecutive outflows that had placed significant pressure on Bitcoin's price. This return to net inflows suggests a potential stabilization in institutional demand, which had weakened considerably during the first half of the year, a period in which Bitcoin fell more than 30%.
AdBroader Crypto Market Rises
The positive sentiment extended across the digital asset market, with most major altcoins posting gains. Key movers on Friday included:
- Ethereum (ETH): Jumped 4.3% to $1,734.55.
- Cardano (ADA): Surged 5.1%.
- Dogecoin (DOGE): Gained 2.1%.
- XRP: Rose 1.2% to $1.1059.
Looking ahead, market participants remain focused on the Federal Reserve's policy path. "In the medium term, the biggest question is whether the run of data in the coming months proves strong enough to force the Fed’s hawkish bias into action," an IG analyst noted recently.