Bitcoin’s price gained momentum after US labor data showed a significant slowdown in job additions, sparking renewed interest in major cryptocurrencies. The market cap of all cryptocurrencies climbed modestly, supported by Bitcoin’s rise to above $62,600 and a nearly 5% increase over the past week.
The key driver was the US economy’s addition of significantly fewer jobs than anticipated, registering just 57,000 compared to forecasts of 110,000. This unexpected softness eased expectations for aggressive Federal Reserve interest rate hikes, buoying demand for risk assets like Bitcoin and Ethereum.
Analysts point to a historical pattern where Bitcoin’s price dips during May and June have been followed by substantial gains in July, averaging around 19%. If this trend repeats, Bitcoin could test the $70,000 to $71,000 range shortly. However, traders remain cautious, watching volume levels and resistance points before confirming a sustained rally.
Institutional interest also showed signs of revival, with Bitcoin spot ETFs reversing a 10-day outflow streak by attracting $222 million in net inflows. Similarly, Ethereum spot ETFs recorded positive inflows exceeding $29 million. These fund flows suggest renewed confidence from institutional investors, which might provide additional support to Bitcoin’s price near critical levels.
Leading cryptocurrencies like Ethereum, XRP, and Dogecoin also enjoyed price gains alongside Bitcoin, reflecting improved market sentiment. Ethereum, in particular, surged beyond the $1,700 mark, driven by the positive momentum enveloping the crypto space.