Bitcoin Climbs Above $62,000 as Softer U.S. Jobs Data Eases Fed Concerns

Bitcoin rose above $62,000 on Friday, positioning it for a weekly gain as softer-than-expected U.S. labor market data eased investor concerns about potential Federal Reserve interest rate hikes. The rally was further supported by a return to net inflows for U.S. spot Bitcoin exchange-traded funds (ETFs) after a prolonged period of withdrawals.

Rate Hike Fears Subside

The price of the world's largest cryptocurrency traded 1.9% higher at $62,010.0 by mid-morning, according to Investing.com data. This marks a significant rebound from a low of under $58,000 earlier in the week and puts Bitcoin on track for a 3% weekly increase.

Market sentiment improved after recent U.S. jobs data indicated a cooling labor market. This development has reinforced expectations that the Federal Reserve may refrain from raising interest rates in the near term, as lower borrowing costs typically support risk-sensitive assets like cryptocurrencies by improving market liquidity.

ETF Flows Reverse Course

A key driver for the renewed optimism was a reversal in institutional demand for spot Bitcoin ETFs. After 10 consecutive sessions of withdrawals that weighed heavily on prices, U.S.-based spot Bitcoin ETFs recorded net inflows of $221.7 million on July 2, according to data from SoSoValue.

Ad

The recent outflows had contributed to a difficult first half of the year for Bitcoin, which lost more than 30% in its weakest six-month performance in years. The decline was largely attributed to weakening institutional demand reflected in the consistent ETF withdrawals.

Altcoins Join the Rebound

The positive momentum extended to the broader cryptocurrency market, with most major altcoins posting gains on Friday. The buying was broad-based, signaling a wider risk-on mood among crypto investors.

Key performers included:

• Ethereum (ETH): Jumped 4.3% to $1,734.55.
• Cardano (ADA): Surged 5.1%.
• XRP: Rose 1.2% to $1.1059.
• Dogecoin (DOGE): Gained 2.1%.