Bitcoin surged to $60K after hitting a 21-month low, driven by easing rate hike fears from weak U.S. economic data.
Summary
- Bitcoin surged to $60,000 on Wednesday after dipping to $58,000, its lowest point since September 2024.
- This rebound followed underwhelming U.S. job and factory data, alongside ambiguous comments from Fed Chair Kevin Warsh, easing worries about interest rate hikes.
- Despite June being a tough month with a record $4.5 billion outflow for U.S. spot Bitcoin ETFs, long-term holders are increasingly accumulating Bitcoin.
Bitcoin saw a notable recovery on Wednesday, bouncing back from a 21-month low. The cryptocurrency fell to an intraday low of $57,779 before rising 2.8% to around $60,000, according to CoinGecko. This price remains significantly lower than its all-time high of nearly $126,000 from October 2025.
Weaker Economic Data Eases Rate Hike Fears
The recent uptick in Bitcoin's price was influenced by disappointing economic indicators from the U.S., which challenged the Federal Reserve's aggressive rate hike narrative. The ADP reported that private sector job additions fell to 98,000 in June, down from 122,000 in May and lower than anticipated. Additionally, the ISM manufacturing index decreased from 54 to 53.3, with the prices-paid gauge also declining, suggesting a potential easing of inflation. Fed Chair Warsh's indecisive comments regarding future rate hikes contributed to this trend, leaving the two-year Treasury yield unchanged at 4.15%.
June was a particularly challenging month for Bitcoin, marked by record outflows from U.S. spot Bitcoin ETFs totaling $4.5 billion, coinciding with Warsh's initial chair meeting that shifted the Fed's focus towards potential rate hikes.
Signs of Market Stabilization?
Despite these difficulties, Glassnode indicates a shift in market dynamics, with long-term holders beginning to accumulate Bitcoin again. Spot order books on major exchanges are increasingly favoring buy orders, although many Bitcoin holders are currently underwater on their investments. Analyst Chris Beamish described this phase as "the early stages of a bottoming process," while warning that a final capitulation spike may still be possible.
Accumulation Below the Surface $BTC has fallen below $60K as ETF outflows persist. Despite the weakness, long-term holders are absorbing supply, suggesting patient capital is returning.
— glassnode (@glassnode) July 1, 2026
Stablecoins Unaffected by Bitcoin Volatility
For payment firms, Bitcoin's price fluctuations are becoming less impactful. Amram Adar, CEO of Oobit, noted that significant price drops elevate the crypto Fear and Greed index to extreme fear levels. However, he asserted that the negative effects are no longer pervasive, stating, "Stablecoins are no longer tied to Bitcoin's volatility." He emphasized the distinct needs of speculators and individuals seeking stable currencies, with stablecoin payments increasingly integrated into daily transactions and demand rising across key markets.
The sustainability of Bitcoin's recent rise may hinge on the upcoming U.S. jobs report: a weak result could strengthen the view that the Fed's hawkish stance has peaked, while a strong report might push Bitcoin back toward its lows.
