Bitcoin rose above $63,000, extending the gains recorded last week after weaker than expected U.S. economic data helped ease concerns over a potential Federal Reserve interest rate hike, while renewed inflows into spot Bitcoin exchange traded funds improved investor sentiment.
The world’s largest cryptocurrency advanced 0.8% to $63,227 after touching nearly $64,000, its highest level in two weeks. Bitcoin gained around 5% last week, recovering from a 21 month low after falling below $58,000 earlier.
Investor appetite improved after the release of U.S. June jobs data, which showed a sharper than expected slowdown and strengthened expectations that the Federal Reserve may avoid raising interest rates this year.
Comments from Federal Reserve Chair Kevin Warsh also supported this view. He said inflationary pressures continued to ease and stressed that monetary policy decisions would remain dependent on economic data, prompting markets to reduce expectations for additional tightening.
The return of positive net inflows into U.S. spot Bitcoin ETFs after several weeks of outflows also helped restore investor confidence, offering a sign that institutional demand was beginning to stabilize.
The recovery followed a difficult June for Bitcoin, when the asset came under heavy pressure from concerns over tighter financial conditions and profit taking after a strong rally earlier in the year.
Still, analysts warned that trading volumes remain relatively limited, noting that further gains will depend on continued inflows into spot Bitcoin ETFs and supportive economic data.
Markets are now focused on the Federal Reserve’s latest policy meeting minutes for additional signals on the interest rate outlook, while traders are watching whether Bitcoin can hold above the $63,000 to $64,000 range to extend its recovery.
Across the crypto market, altcoins also continued to post gains. Ethereum rose 0.7% to $1,775.92, XRP advanced 0.6% to $1.14, while Solana and Cardano were largely steady in early trading. Dogecoin gained 1.4%.
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