Bitcoin surged back above $61,000 after tumbling to $57,750, following a weaker-than-expected June non-farm payrolls report that cut Fed rate-hike odds in half. The move marks a sharp reversal for the largest cryptocurrency, which had been under pressure in recent weeks.
The catalyst was a significant miss in U.S. jobs data, which reduced expectations for further monetary tightening. On-chain metrics showed seller exhaustion signals not observed since 2022, suggesting the sell-off may have exhausted itself. The report also fueled speculation that the Federal Reserve could pivot toward a more accommodative stance.
Other cryptocurrencies saw mixed reactions. Cardano traded up 6.5% as short liquidations hit $857K in 24 hours and whale holdings reached an all-time high, according to Cryptonews. Meanwhile, Grayscale's Ethereum Staking Mini ETF recorded $337 million in Q1 inflows amid a CFO departure, signaling institutional interest in ETH derivatives.
Analysts caution that the bounce may be fragile. The jobs data is a single month's reading, and inflation remains above the Fed's target. If upcoming CPI reports remain elevated, rate cut hopes could fade, reversing Bitcoin's recovery. The seller exhaustion signal, while historically bullish, has limited precedent in this macro environment.