Bitcoin (BTC) Briefly Breaks $62,000 Amid Slowing Employment...Is a Major Surge Starting Amid Whale Buying?

▲ Bitcoin (BTC)/AI Generated Image

Bitcoin (BTC) briefly surpassed $62,000, reigniting hopes for interest rate cuts, on the back of weak U.S. employment data.

According to crypto media outlet Benzinga on July 2 (local time), the cryptocurrency market rose amidst slowing U.S. employment figures and a decreased likelihood of the Federal Reserve (Fed) holding interest rates steady. Bitcoin briefly exceeded $62,000 during the day but failed to maintain its upward momentum, falling back to the early $61,000s.

Major altcoins also saw a synchronous rise. Ethereum (ETH) consolidated after breaking $1,700, while XRP rose 3.23% to $1.09. Solana (SOL) increased by 4.20% to $81.33, and Dogecoin (DOGE) rose by 3.17% to $0.07466.

Volatility expanded in the derivatives market. According to Coinglass data, approximately $460 million worth of positions were liquidated in the cryptocurrency market over the past 24 hours, with most being short positions. Bitcoin's open interest increased by 1.14% over 24 hours, reaching $46.22 billion.

U.S. stocks also showed strength, digesting the employment data. The Dow Jones Industrial Average rose 594.83 points, or 1.14%, to close at a record high of 52,900.07. The S&P 500 Index slightly increased to 7,483.24, and the Nasdaq Composite closed down 0.8% at 25,832.67.

U.S. non-farm payrolls in June increased by only 57,000, falling short of both market expectations of 110,000 and May's 129,000. The unemployment rate was 4.2%, lower than the market's anticipated 4.3%. According to CME Group's FedWatch tool, the probability of an interest rate hold in September decreased from approximately 50% the previous day to 45%.

Blockchain analytics firm CryptoQuant warned that if Bitcoin fails to hold $60,000, selling pressure could accelerate, potentially leading to a drop to around its realized price of $53,000. CryptoQuant analyzed that the average Bitcoin deposit size doubled from 1 BTC to 2 BTC, indicating increased activity from whales and institutional investors. CryptoQuant stated, “Whales appear to be driving the movement. Volatility is approaching.” Cryptocurrency analyst Michaël van de Poppe said, “The market is just waking up, and sentiment can change quickly.”

[Article Key Summary]

-Bitcoin briefly surpassed $62,000 amid slowing U.S. employment data and expectations of interest rate cuts.

-Approximately $460 million worth of positions were liquidated in the cryptocurrency market over the past 24 hours, with most being short positions.

-CryptoQuant warned that if Bitcoin fails to hold $60,000, it could drop to around $53,000.

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