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Bitcoin Climbs Above $62,000, Set for Weekly Gain on Softer Jobs Data and ETF Inflows
Bitcoin rose above the $62,000 mark on Friday, extending a rebound from earlier weekly lows and positioning the asset for a positive weekly close. The move was supported by softer-than-expected U.S. jobs data, which tempered expectations for hawkish Federal Reserve monetary policy, and a notable reversal in fund flows for spot Bitcoin exchange-traded funds (ETFs).
Economic Data Eases Rate Hike Fears
Market sentiment for risk-sensitive assets, including cryptocurrencies, improved after the latest U.S. labor market report indicated a cooling in employment conditions. This data reinforces investor expectations that the Federal Reserve may hold off on raising interest rates in the near term. A less aggressive monetary policy stance typically improves liquidity conditions, which can be favorable for assets like Bitcoin.
By 08:49 ET (12:49 GMT), Bitcoin traded at $62,010.0, a gain of 1.9%, according to Investing.com. The price action marks a significant recovery from its dip below $58,000 earlier in the week and puts the cryptocurrency on track for a weekly gain of approximately 3%.
ETF Flows Signal Renewed Institutional Interest
A key driver of the price recovery was a shift in institutional demand, as reflected in ETF flows. After a prolonged period of outflows that weighed on prices, U.S. spot Bitcoin ETFs recorded significant net inflows.
AdData from SoSoValue showed that these funds attracted $221.7 million in net inflows on July 2, breaking a 10-day streak of consecutive withdrawals. This reversal is a critical indicator of renewed investor confidence, especially after Bitcoin lost more than 30% in the first half of the year amid weakening institutional demand.
Broader Crypto Market Rallies
The positive sentiment was not confined to Bitcoin, as most major alternative cryptocurrencies also posted gains on Friday.
- Ethereum (ETH), the second-largest cryptocurrency, jumped 4.3% to $1,734.55.
- Cardano (ADA) surged 5.1%.
- XRP rose 1.2%, while Dogecoin (DOGE) gained 2.1%.
- Solana (SOL) saw a modest increase of 0.1%.