Bitcoin Reclaims $61,000 After Weak US Jobs Data as On-Chain Signals Improve

Bitcoin regained the $61,000 level after weak US employment data, while on-chain indicators pointed to signs of seller exhaustion.

Cointelegraph reported on July 2 that Bitcoin recovered the $61,000 mark, rebounding from the previous day's low of $57,750. The US Labor Department reported that June nonfarm payrolls increased by 57,000, far short of market expectations for 113,000. April and May figures were also revised down by a combined 74,000.

The weak labor data reduced expectations for further Federal Reserve rate increases and prompted shifts in capital across asset classes. CME FedWatch data showed the probability of a September rate hike fell to 54% from 64% a day earlier. The tech-heavy Nasdaq 100 gave up three days of gains, while gold rebounded, reflecting renewed demand for scarce assets.

Weakness in the AI sector also helped support Bitcoin's rebound. Semiconductor and storage-related shares, including SanDisk, Seagate, Western Digital and Applied Materials, fell more than 9% intraday. That fueled expectations that money leaving technology stocks could move into alternative assets.

On-chain metrics are also signaling a bottom. Gaah_im, an analyst at on-chain analytics platform CryptoQuant, wrote that Bitcoin's realized profit-and-loss ratio had fallen to its lowest level since 2022. The share of supply in profit turning negative has historically pointed to cycle bottoms with a high degree of accuracy.

Meanwhile, oil prices stabilized below $70 a barrel for West Texas Intermediate after Qatar's Foreign Ministry said there had been "positive progress" in negotiations between the US and Iran. Lower oil prices could widen room for economic stimulus. The Fed's balance sheet has been largely flat at $6.73 trillion, but the cap on short-term Treasury purchases is set at $40 billion a month, leaving open the possibility of additional liquidity supply.