Bitcoin Briefly Tops $62,000 as Easing Fed Rate-Hike Fears Boost Risk Appetite

The cryptocurrency market rebounded as weaker U.S. employment data eased concerns about additional Federal Reserve rate hikes.

CoinDesk reported on July 3 that softer U.S. labor data lowered the likelihood of further Fed tightening, improving sentiment toward risk assets. Nasdaq 100 futures rose 1.9%, adding support for technology stocks and digital assets.

Bitcoin traded near $62,000, up 6.5% from its July 1 low of $57,750. Still, its advance on July 3 was modest compared with the previous day's 2.6% rebound. Market activity also appeared to slow as U.S. equities closed ahead of the Independence Day holiday.

Ethereum extended gains for a third straight trading day. It has climbed 11.5% since July 1 and rose another 2.6% on the day. Major altcoins including Cardano's ADA, Zcash's ZEC and Dash's DASH also gained 2.2% to 3.1%.

CoinDesk said market structure has not fully recovered. Many cryptocurrencies are still showing a pattern of lower highs and lower lows. For Bitcoin to reverse its downtrend, it would first need to reclaim $67,000 and then break above its May high of $81,000.

In derivatives markets, Ethereum liquidations exceeded Bitcoin's. Total crypto futures liquidations reached $417 million over the past 24 hours, including $160.8 million in Ethereum. Bitcoin liquidations totaled $97 million. CoinDesk said that indicates a substantial buildup of bearish positions in Ethereum.

Open interest in Ethereum futures rose to 14.31 million ETH, the highest since June 10. Annualized funding rates also approached 10%, and Ethereum posted the highest 24-hour cumulative volume delta among major cryptocurrencies. CoinDesk interpreted that as a sign of growing demand for bullish exposure.

Open interest in Dogecoin futures also climbed to 14.13 billion DOGE, the highest since May 16. By contrast, Hedera's HBAR and Zcash futures showed relative weakness. Hedera posted the lowest 24-hour cumulative volume delta among major tokens, suggesting an increase in aggressive short positions through market sell orders.

In the options market, bullish bets were prominent in both Bitcoin and Ethereum. The most actively traded Bitcoin options on Deribit over the past 24 hours were call options with strike prices of $60,000 to $70,000. In Ethereum options, the $2,500 call option was the most actively traded.

Among altcoins, Uniswap's UNI led gains. UNI rose more than 11% over the past 24 hours after news that it had been adopted as a key automated market maker on Robinhood's Layer 2 blockchain. Trading volume also nearly doubled to $320 million.

Some AI-related tokens also rebounded. FET, Render and Bittensor's TAO each rose 1.5% to 2.3% on the day after recent selling pressure.

Solana's SOL showed the strongest momentum among major cryptocurrencies. After falling to $68 last week, SOL has risen more than 17% over the past week and traded near $80.

Still, a broader altcoin bull market has yet to be confirmed. CoinMarketCap's Altcoin Season Index stood at 46, remaining in the neutral range for the past month. Markets are watching how much appetite for risk assets recovers as concerns over further rate hikes ease.