The first cryptocurrency ended the work week with an impressive surge, breaking through the $64,000 mark. This momentum was the result of a classic short squeeze triggered by macroeconomic data from the United States. Within hours, the market liquidated short positions worth hundreds of millions of dollars, confirming that bears were once again on the sidelines.
The start of the week for Bitcoin was marked by a confident recovery from a local drop to $58,293 recorded on July 1. However, the key catalyst for growth was the release of a weak U.S. labor market report. In June, the economy created only 57,000 new jobs — a figure significantly below analysts' forecasts. This sharply reduced market expectations regarding a tightening of the Federal Reserve's monetary policy.
The decreased likelihood of rate hikes led to a decline in U.S. Treasury bond yields and a weakening of the U.S. dollar. Under such conditions, holding risk assets, including Bitcoin, becomes more attractive. Additional support came from the spot BTC-ETF sector: after a prolonged wave of outflows, investment funds finally recorded a net inflow of funds, although institutions are still digesting record June losses of $4.5 billion.
When the price of Bitcoin surpassed the $62,000 level, a chain reaction began. Traders lost over $450 million on short positions in the derivatives segment. Forced short closures spurred further growth, triggering liquidations for the next wave of bears. This is a classic scenario that, under conditions of reduced liquidity, can lead to sharp price fluctuations in either direction.
Against this backdrop, altcoins also showed strong growth. Ether rose approximately 4% in a day and nearly 10% over the week, while Solana gained about 19%, marking the best result among major tokens. However, it is worth noting that institutional flows have not yet confirmed the sustainability of this movement — ETF funds continue to recover after their worst month since launch.
Analytical commentary from Cryptalist: The current short squeeze is a powerful but short-term signal. It rarely generates stable organic demand. The third quarter is traditionally characterized by reduced liquidity, and this factor could amplify volatility. To confirm a long-term upward trend, Bitcoin needs to consolidate above $64,000 and gain support from institutional capital. For now, we are observing more of a technical bounce rather than a shift in the global trend.