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Key Takeaways
- Bitcoin rose to nearly $64,000, rebounding sharply from a $58,293 low hit on July 1
- A weak June jobs report reduced near-term Fed rate hike odds, boosting Bitcoin and other risk assets
- Short sellers lost more than $450 million as forced buybacks compounded the price surge past $62,000
Bitcoin climbed to nearly $64,000 in early trading on July 6, extending a weekend rally that liquidated hundreds of millions of dollars in short positions. The token reached $63,900 on CoinGecko, capping a sharp reversal from the $58,293 low it touched on July 1.
A weaker-than-expected June jobs report shifted interest-rate expectations heading into the new week, which traders cited as a factor in the rebound.
A Weak Jobs Report Set Off the Rally
The move traces back to Thursday’s U.S. Nonfarm Payrolls report, which showed the economy added just 57,000 jobs in June, well below forecasts. The miss reduced the odds of a near-term Federal Reserve rate increase.
Bitcoin had already gained ground earlier in the week following remarks from Federal Reserve official Kevin Warsh on inflation risk. Lower Treasury yields and a weaker dollar followed the jobs data. Analysts said this reduced the opportunity cost of holding Bitcoin and helped the asset recover from a bearish June.
Analysts said spot Bitcoin ETFs also contributed to the momentum. The funds recorded a reversal in flows that snapped ten consecutive days of redemptions, though they had not yet offset $4.5 billion in outflows recorded in June, a monthly record.
Short Positions Unwound as Bitcoin Broke Key Levels
Traders lost more than $450 million on short positions across derivatives markets as Bitcoin broke through $62,000. Analysts described the losses as reflecting a squeeze dynamic in which forced buybacks from liquidated short sellers pushed the price into the next tranche of positions, compounding the move higher.
Analysts said the pattern is consistent with short squeezes seen in prior Bitcoin rallies, where rapid price gains stem more from forced covering than from new buying demand.
Ether rose roughly 4% on the day and about 10% over the week. Solana posted the strongest gain among major tokens, adding nearly 19% over the same period.
Analysts said institutional flows have not fully confirmed the broader move. Spot Bitcoin ETFs are still recovering from their worst month on record, and the scale of ETF inflows so far has not matched the pace of the spot market rally.
Analysts Weigh the Rally’s Durability Amid Thin Liquidity
Whether the squeeze marks the start of a sustained trend or a short-lived correction remains unresolved. Analysts noted that forced short-covering typically produces fast, sharp price moves rather than durable demand, and said the underlying buying pressure behind the current rally has not been independently confirmed by spot or ETF data.
The market enters the third quarter with thinner liquidity following the summer slowdown, a condition that has historically amplified price swings in both directions. Upcoming ETF flow data and any further Federal Reserve commentary are likely to factor into whether the rally can hold above the $62,000 level that triggered the latest round of liquidations.
