Story
Bitcoin Climbs Above $62,000 as Softer Jobs Data and ETF Inflows Boost Sentiment
Summary
The leading cryptocurrency is poised for a weekly gain, recovering from recent lows after weaker U.S. labor market figures eased concerns about Federal Reserve rate hikes and spot ETFs saw a return of investor demand.
Bitcoin rose above $62,000 on Friday, positioning the digital asset for a weekly gain as a combination of softer U.S. economic data and renewed institutional interest helped lift market sentiment. The world's largest cryptocurrency recovered from a multi-month low set earlier in the week, extending a rebound that has provided some relief to investors after a difficult first half of the year.
As of 08:49 ET (12:49 GMT), Bitcoin was trading at $62,010.0, a gain of 1.9% for the session, according to Investing.com data. The move puts the cryptocurrency on track for a weekly rise of approximately 3%.
Catalysts for the Rebound
Two primary factors appear to be driving the recent price recovery:
- U.S. Economic Data: Recent U.S. labor market data pointed to a cooling jobs market. This has reinforced market expectations that the Federal Reserve may hold off on further interest rate hikes in the near term. Lower borrowing costs typically improve liquidity and support risk-sensitive assets like cryptocurrencies.
- Renewed ETF Demand: U.S.-based spot Bitcoin ETFs recorded net inflows of $221.7 million on July 2, ending a 10-day streak of consecutive withdrawals, according to data from SoSoValue. These persistent outflows had been a significant headwind for Bitcoin's price, and the reversal signals a potential return of institutional demand.
This recovery follows a challenging period for the asset, which lost more than 30% in the first half of the year, marking one of its weakest six-month performances amid waning institutional interest.
AdBroader Crypto Market Rises
The positive sentiment extended across the wider cryptocurrency market, with most major altcoins posting gains. The rally suggests a broad-based improvement in risk appetite among crypto traders.
Key altcoin movements included:
- Ethereum (ETH): The second-largest cryptocurrency jumped 4.3% to $1,734.55.
- Cardano (ADA): Surged 5.1%.
- XRP: Rose 1.2% to $1.1059.
- Dogecoin (DOGE): Gained 2.1%.
An analyst from IG noted in a recent report that the key question for the medium term is whether upcoming economic data will be strong enough to "force the Fed’s hawkish bias into action."