On Monday, Bitcoin's price climbed above $63,000 during Asian trading, marking an approximate 0.8% increase. This is part of a broader recovery after the cryptocurrency experienced a significant downturn last month.
Recovery from June's Decline
Bitcoin (BTC) rebounded by around 5% last week after dipping below $58,000, the lowest point it has seen in the last 21 months. The recovery coincided with weaker-than-expected U.S. job growth, which reassured markets about the Federal Reserve's interest rate policies.
Impact of U.S. Job Data
The labor data released for June indicated fewer job additions than anticipated, which in turn diminished concerns regarding imminent interest rate hikes by the Fed. Federal Reserve Chair Kevin Warsh highlighted the moderation of inflation and emphasized the importance of basing policy decisions on incoming data. As a result, market expectations for tightening monetary policy have lessened.
ETF Inflows Signal Investor Confidence
Additionally, the return of net inflows into spot Bitcoin ETFs last week has positively impacted market sentiment. After enduring ten consecutive days of outflows, these ETFs saw net inflows amounting to $222 million as of July 2, 2026. Ethereum spot ETFs also recorded an inflow of $29.08 million during the same period.
Despite previous apprehensions due to June's high outflow rates from ETFs, Coinbase has observed that institutional demand for Bitcoin remains strong. Furthermore, around 40 countries are reportedly in different phases of accumulating Bitcoin, with many opting for direct purchases over ETFs.
Market Analysts Weigh In
Traders are closely monitoring Bitcoin's market performance. Analysts, such as Killa and Ted, have suggested that Bitcoin may be reaching a significant support level or 'bottom' in its price cycle. Their discussions on social media platforms reflect growing interest and speculation about the cryptocurrency's future trajectory.
