Bitcoin (BTC) ended the week with strong price momentum, closely approaching the $64,000 mark. During the upward movement, the asset recorded a local high of $63,900, triggering a massive wave of forced short position liquidations worth hundreds of millions of dollars.
This surge was a logical conclusion to the recovery phase following the recent decline. Recall that on July 1, the BTC price dropped to a local low of $58,293. However, the key catalyst for the shift in sentiment was weak macroeconomic data from the United States. The June jobs report showed the creation of only 57,000 new non-farm payroll jobs — significantly below analyst forecasts. Such an unexpected data miss sharply reduced the likelihood of a tightening of the Federal Reserve's monetary policy, instantly changing investor expectations.
Macroeconomic backdrop and support from ETFs
Alongside this, financial markets saw a decline in U.S. Treasury bond yields and a weakening of the U.S. dollar. These factors noticeably reduced the opportunity cost of holding bitcoin and accelerated the exit from the bearish trend that dominated June. Additional support came from the spot bitcoin ETF sector. After a prolonged wave of capital outflows, investment funds finally recorded net inflows. Institutional platforms are still digesting record June losses, totaling $4.5 billion, but the change in dynamics is an extremely positive signal.
Mechanics of the short squeeze and altcoin movement
Traders lost over $450 million on short positions in the derivatives segment when bitcoin broke through the $62,000 level. The dynamics became a classic example of a short squeeze: forced closures of short positions fueled further price increases, triggering liquidations among the next wave of short sellers. Ether rose about 4% in a day and nearly 10% over the week, while Solana gained around 19% — the best result among major tokens. Institutional flows have not yet fully confirmed the move: ETF funds continue to recover after their worst month since launch.
At this point, the question remains whether the current short squeeze can evolve into a full-fledged long-term trend. Forced closure of margin positions always causes sharp price fluctuations, but it rarely generates stable organic demand. Additionally, the cryptocurrency market enters the third quarter under conditions of reduced liquidity. This specific factor could amplify market volatility in either direction.
My expert assessment: The current momentum is primarily a technical bounce, supported by a favorable macroeconomic backdrop, rather than a shift in the fundamental trend. For a sustained move above $66,000–$68,000, a steady inflow of institutional capital and confirmation from spot ETFs are needed. Until this happens, I recommend viewing the current rise as an opportunity for profit-taking, rather than for aggressive long accumulation.