Bitcoin Stabilizes Above $60k as Early Stage of Bottoming Process Unfolds

Bitcoin's price has stabilized above $60k after an extended decline, but macroeconomic factors are still preventing a long-term rebound. The recent recovery was brought on by a weaker-than-expected June U.S. nonfarm payrolls report, which added only 57,000 jobs compared to the revised 129,000 gain in May.

The unemployment rate decreased from 4.3% to 4.2%, causing the market to push back its pricing for a short-term Fed hike and lowering the yield on the two-year Treasury by more than five basis points. This change in perception has led investors to shift their money to riskier assets like stocks and cryptocurrencies.

However, CoinShares warns that this transient market response should not be confused with a significant shift in Fed policy. The report notes that policymakers are now anticipating rates to average 3.8% at the end of 2026, up from the 3.4% forecast just three months ago.

The whales who held over 100,000 Bitcoin sold off about $39 billion worth of the cryptocurrency around the October market peak but have largely ceased selling as of this year. Despite net outflows of about $2.7 billion from Bitcoin exchange-traded products (ETPs), CoinShares argues that this does not indicate waning trust in the cryptocurrency.