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Bitcoin Surpasses $62,000, Set for Weekly Gain After U.S. Jobs Data
Bitcoin's price climbed above $62,000 on Friday, positioning the cryptocurrency for a weekly gain as softer U.S. jobs data eased investor concerns over potential Federal Reserve interest rate hikes. The rebound was further supported by a reversal in fund flows, with U.S. spot Bitcoin exchange-traded funds (ETFs) recording their first day of net inflows after a prolonged period of withdrawals.
Jobs Data and ETF Inflows Bolster Prices
Market sentiment improved following U.S. labor market data that pointed to cooling employment conditions. This has reinforced expectations that the central bank may hold off on raising interest rates, a move that typically benefits risk-sensitive assets like cryptocurrencies by improving liquidity conditions.
The recovery coincided with renewed institutional demand. According to data from SoSoValue, U.S. spot Bitcoin ETFs registered net inflows of $221.7 million on July 2, snapping a 10-day streak of consecutive withdrawals that had weighed on prices.
As of 08:49 ET (12:49 GMT), Bitcoin was trading 1.9% higher at $62,010.0, according to Investing.com data. The cryptocurrency is on track for a 3% weekly increase, recovering from a low of under $58,000 earlier in the week.
Broader Crypto Market Rallies
The positive momentum extended across the broader cryptocurrency market, with most major alternative coins, or altcoins, posting gains. The price action suggests a broad-based improvement in risk appetite among crypto investors.
AdKey altcoin movements 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.
Market Context
This week's rally offers some relief after a challenging first half of the year, during which Bitcoin lost more than 30% of its value amid weakening institutional demand, marking its weakest six-month performance in years.
Looking ahead, market participants remain focused on the Fed'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 stated in a recent note.