Bitcoin Rises Above $62,000 on Softer US Jobs Data and Renewed ETF Inflows

Bitcoin climbed above $62,000 on Friday, positioning the leading cryptocurrency for a weekly gain after softer U.S. labor market data and a reversal in fund flows helped stabilize investor sentiment. The asset rebounded from a low of under $58,000 earlier in the week and was last trading up 1.9% at $62,010.0, according to Investing.com data.

Rate Hike Fears Subside

Market sentiment improved after recent U.S. jobs data pointed to a cooling labor market, easing investor concerns that the Federal Reserve might pursue another interest rate hike in the near term. A less aggressive monetary policy outlook typically supports risk-sensitive assets like cryptocurrencies, as lower borrowing costs can improve market liquidity.

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." For now, the softer employment figures have provided some relief to markets that had been pricing in a more restrictive policy environment.

ETF Inflows Signal Shifting Sentiment

The price recovery was also supported by a significant shift in institutional demand for spot Bitcoin exchange-traded funds (ETFs). After a prolonged period of withdrawals that weighed heavily on prices, U.S.-based spot Bitcoin ETFs saw a notable turnaround.

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According to data from SoSoValue, these funds recorded net inflows of $221.7 million on July 2, breaking a streak of 10 consecutive sessions of net outflows. This return of capital follows a challenging period for Bitcoin, which lost more than 30% in the first half of the year amid weakening institutional interest.

Broader Crypto Market Rallies

The positive momentum was not confined to Bitcoin, as most major alternative cryptocurrencies, or altcoins, also posted gains on Friday. The broader buying interest suggests a market-wide improvement in risk appetite.

• Ethereum (ETH), the second-largest cryptocurrency, jumped 4.3% to $1,734.55.
• Cardano (ADA) surged 5.1%.
• Dogecoin (DOGE) gained 2.1%.
• XRP rose 1.2% to $1.1059, while Solana (SOL) added 0.1%.