Bitcoin pushes toward $62,000 as risk appetite returns

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Bitcoin pushes toward $62,000

Highlights

Bitcoin traded at $62,010, up 0.86%.
U.S. payrolls rose by only 57,000 in June.
Weak jobs data lifted Fed rate cut expectations.
Short liquidations added fuel to the rebound.

Weak payrolls drive the rebound

The main trigger was the June U.S. payrolls report. Employers added 57,000 jobs, well below the 113,000 expected by economists, BeInCrypto reported. Payroll figures for April and May were also revised lower by a combined 74,000, while labor-force participation fell to 61.5% from 61.8%.

The weak data changed the market’s view of Fed policy. Slower job growth reduced fears of further rate increases and strengthened expectations that the central bank may eventually cut rates. That helped risk assets, including Bitcoin, recover after a difficult June.

Bitcoin’s move also came after comments from Fed Chair Kevin Warsh, who said inflation risks had eased. Those remarks added to expectations that monetary policy could become less restrictive if incoming data continues to weaken.

Short sellers exit positions

Another factor behind the rise was short covering. As Bitcoin moved back above $60,000, bearish traders were forced to close positions, adding more buying pressure to the market.

According to market data, about $450 million in cryptocurrency short positions were liquidated over 24 hours. This helped accelerate the rebound and brought Bitcoin closer to the $62,000 mark.

The move followed a steep monthly decline. Bitcoin had just posted its worst month since June 2022, falling 20.5% in June. The latest rally partly reflects a recovery from that selloff rather than a clear return to sustained upward momentum.

What could affect the next move

The next stage for Bitcoin will depend mainly on macroeconomic data and investor demand. A softer inflation report could strengthen expectations of Fed rate cuts and support further gains, while stronger inflation could weaken the rebound.

ETF flows are another important factor. Spot Bitcoin ETFs saw heavy outflows in June, with redemptions reaching $4.06 billion, the worst month since the products were listed. But the funds recorded $221 million in inflows on Thursday, showing that some demand has returned.

Large holders have also been active. Bitfinex analysts said major Bitcoin holders bought more than 270,000 BTC over the past two weeks. That accumulation helped support the market even as institutional flows remained uneven.

For now, Bitcoin’s rise was driven by three clear factors: weak U.S. payrolls, renewed rate-cut expectations, and short sellers closing bearish bets. Whether the move continues will depend on the next round of inflation data, Fed signals, and ETF demand.

As we previously reported, Metaplanet expands Bitcoin treasury despite market downturn.

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