Bitcoin ETFs Surge Amid $281M Short Squeeze

Bitcoin ETFs recorded their best day in two months on July 2, breaking a 10-session outflow streak. The $281 million short squeeze wiped out a large amount of bearish positions, with Bitcoin pushing up to $62,145, its highest point in two weeks.

The gains were spread across the market rather than limited to Bitcoin alone, with Ethereum, Solana, and XRP also posting decent gains. This made July 2 the strongest session for crypto markets in several weeks.

According to Coinglass data, a Short Squeeze setup forced the closing of around $281 million in short positions on July 2. This is nearly double the closings in long positions, which accounted for $159 million. In total, this event triggered more than 95,000 liquidation events.

The fresh U.S. jobs data for June came in weaker than forecast, reducing the chances of further Fed rate hikes. Lower expectations of rate increases usually support asset prices broadly, as they put pressure on the dollar index.