After some of the most bearish weeks in recent crypto history, is now breathing a sigh of relief. Bitcoin has staged a pump to the $62,000 mark for the first time in more than a week.
Bitcoin price rally was fueled by a perfect storm of fresh macroeconomic data, massive institutional inflows, and a brutal wipeout of short sellers who got too greedy. This sudden, explosive rally caught many retail traders completely off guard.
Bitcoin ETFs Record $221M Inflows
Institutional investors are actively buying the dip again. On July 3, US spot Bitcoin ETFs recorded a massive $221 million in net inflows. This sudden influx of capital brought a welcome end to a painful 10-day streak of consecutive outflows.
Leading the pack was Ark & 21Shares’s ARKB, which alone attracted over $91.84 million. Fidelity’s FBTC followed closely behind, securing roughly $165 million. This aggressive institutional buying clearly signals that big-money confidence remains incredibly strong despite recent price drops.
Cooler Monthly Jobs Report Spark Market Rally
The actual spark that ignited this massive rally came straight from traditional finance. The latest US monthly came in much cooler than economists had initially expected. This softer labor data instantly shifted the broader market sentiment.
According to experts, this is a sign that the Federal Reserve could cut interest rates later this year. A rate cut will mean cheaper liquidity, which historically favors Bitcoin price. As a result, both stocks and digital assets saw immediate buying pressure.
$281M Bearish Crypto Bets Liquidation Spark Short Squeeze
As the macroeconomic data turned bullish, over-leveraged short sellers got trapped. The sudden upward price movement triggered a massive short squeeze across the entire crypto market. Over $281 million worth of bearish crypto bets were violently liquidated within a brief 24-hour window.
Bitcoin liquidations were more than $100 million, per CoinGlass data. Short traders who predicted a significant drop in Bitcoin’s price had to purchase BTC to hedge the bet. Such a forced purchase generated a self-reinforcing effect that quickly catapulted the price trend upwards.
Bitcoin Pump To $62K
Bitcoin price reacted instantly to the short squeeze and report of ETF inflows. An aggressive pump sent Bitcoin price to $62,000 for the first time in more than a week. However, BTC price had not broken this resistance and is currently testing the $61,700 level, CoinMarketCap data indicates.
This rapid turnaround in the market indicates the speed with which liquidity can return to the crypto market. Investors like MerlijnTrader who had anticipated a drop in Bitcoin under $55,000 are now left behind.
Technical Indicators Show Sign of Life
Looking closely at the charts, Bitcoin’s technical setup is showing major signs of life again. Investing.com Bitcoin Technical Chart shows that key indicators are improving across the board. The daily RSI (14) and CCI (14) indicators have moved into the neutral zone, showing renewed bullish momentum.
Additionally, Bitcoin price is reclaiming some of its critical moving averages. Bitcoin price now sits above simple and exponential MA5 ($60,396.8 and $60,725.3) and MA 10 ($60,246.8 and $60,997.2). If momentum continues to build as capital flows into Bitcoin, these levels could be key support to BTC reclaiming $62K soon.