Bitcoin (BTC) spiked to nearly $64,000 in the early hours of July 6, reaching $63,900 on CoinGecko, extending a weekend rally that liquidated hundreds of millions of dollars in short positions.
The move capped a sharp reversal from the $58,293 low Bitcoin touched on July 1. A softer-than-expected jobs report reshaped rate-hike expectations heading into the new week, helping Bitcoin’s price claw back.
Weak Jobs Data Triggers a Short Squeeze
The rally traces back to Thursday’s US Nonfarm Payrolls report. The report showed the economy added just 57,000 jobs in June, far below forecasts. The miss lowered the odds of a near-term Federal Reserve rate hike, and Bitcoin had already gained ground on Warsh’s inflation risk comments earlier in the week.
Lower Treasury yields and a weaker dollar reduced the opportunity cost of holding Bitcoin, helping the asset recover from a bearish June. Spot Bitcoin ETFs added to the momentum. An ETF inflow reversal snapped a 10-day run of redemptions, though the funds are still working through June’s record outflows of $4.5 billion.
Short Sellers Caught Off Guard
The sudden reversal caught short-sellers off guard. Traders lost over $450 million in short positions across the derivatives market as Bitcoin broke through $62,000. Bitcoin’s price reflected the broader squeeze dynamic, in which forced buybacks push the price into the next tranche of shorts.
Ether rose roughly 4% on the day and about 10% over the week, while Solana added nearly 19%, the strongest gain among major tokens. Institutional flows have not fully confirmed the move, with ETFs still recovering from their worst month on record.
Whether the squeeze becomes a durable trend remains an open question. Forced short-covering tends to produce fast price moves rather than sustained demand. The market now enters the third quarter with thinner liquidity, a dynamic that could cut in either direction.