July 4th Rally: Bitcoin Caught Between $62k and $66k

The US Bureau of Labor Statistics released June payroll growth at just 57,000 jobs, well below the 110,000 economists polled had predicted. This weak labor data reduced pressure for another Federal Reserve rate hike, which in turn supported risk assets.

The dollar was on track for its biggest weekly drop since early April, while CME FedWatch data showed roughly a 45% chance of a September hike once the numbers landed.

A softer dollar and lower odds of a hike gave crypto buyers the macro setup they wanted heading into the July 4 weekend. However, options traders are still hedged, with Bitcoin puts trading at a premium to call options on Deribit, indicating that they're ready to redeploy if Bitcoin slips.