Bitcoin Reclaims $60,000 as Market Sees Short-Term Relief Amid Weak Outlook for Fed Rate Cuts

ME News reports that on July 3 (UTC+8), QCP Capital stated that Bitcoin briefly dropped below the key support level of $58,000 on Wednesday, touching a low of approximately $57,700, before rebounding on stronger-than-expected U.S. June non-farm payrolls data and reclaiming the $60,000 level. Ethereum performed even more strongly, rising back above $1,700, a nearly 10% recovery from its mid-week low. The options market quickly absorbed the previous panic sentiment, with short-term implied volatility declining and the term structure reverting to a contango market. July-expiry call options became the dominant trading focus, with volatility sellers regaining the upper hand. However, this non-farm payrolls data was insufficient to signal a dovish shift by the Fed; accelerating wage growth, a declining unemployment rate, and robust consumer spending all suggest the Fed still has room to maintain a hawkish stance. Although Bitcoin spot ETFs ended six consecutive days of net outflows with a $224 million net inflow, U.S. Treasuries and equities have not yet confirmed a broad-based recovery in risk appetite. Thus, the current movement appears more like a temporary rally in the crypto market, and investors remain watchful to see whether this upward momentum can be validated by broader asset classes. (Source: BlockBeats)