Summary
- Bitcoin rebounded to $60,000 on Wednesday after touching a low of $58,000, marking its lowest point since September 2024.
- This recovery came on the heels of disappointing U.S. jobs and factory statistics, along with ambiguous remarks from Fed Chair Kevin Warsh, alleviating worries about further interest rate increases.
- June proved to be a challenging month, with U.S. spot Bitcoin ETFs experiencing a record outflow of $4.5 billion, despite data from Glassnode indicating that long-term holders are steadily accumulating Bitcoin.
Bitcoin experienced a significant rebound from its lowest level in nearly two years on Wednesday. This upward movement was fueled by soft U.S. economic indicators and indecisive comments from the Federal Reserve chair, which provided a much-needed lift to a struggling market.
The cryptocurrency dropped to an intraday low of $57,779, marking its weakest level since September 2024, before recovering by 2.8% to around $60,000, as per CoinGecko data. Despite this recovery, Bitcoin remains approximately 52% below its all-time high of nearly $126,000 reached in October 2025.
Weaker Economic Data Eases Rate Hike Fears
The turnaround was prompted by disappointing U.S. economic reports that challenged the Fed's aggressive stance. According to ADP, private sector employers added only 98,000 jobs in June, a decrease from 122,000 in May and below expectations. The ISM manufacturing index fell to 53.3 from 54, and its prices-paid gauge dropped to 73 from 82.1, suggesting that inflation pressures might be easing. Meanwhile, Fed Chair Kevin Warsh did not indicate whether policymakers are favoring rate hikes in July or September, leading the two-year Treasury yield to close unchanged at 4.15%.
This rebound interrupts a harsh period for the market. June marked the worst month for U.S. spot Bitcoin ETFs, which saw outflows totaling $4.5 billion, according to SoSoValue data. This followed Warsh's initial meeting as chair, which shifted the Fed's stance towards potential hikes and ruled out rate cuts.
Signs of Market Stabilization?
Amidst the challenging circumstances, Glassnode suggests that the market dynamics are changing. Long-term holders are returning to accumulation, and spot order books on Binance and Coinbase are becoming more bid-heavy, even though more Bitcoin is currently held at a loss than at a profit. Analyst Chris Beamish characterized the situation as "the early stages of a bottoming process," while cautioning that a final capitulation spike could still occur.
Accumulation Below the Surface$BTC has fallen below $60K as ETF outflows persist. Despite the weakness, long-term holders are absorbing supply, suggesting patient capital is returning.
Read the full Week On-Chain👇https://t.co/Z9mcD2HARb pic.twitter.com/zJeYlYuAK7
— glassnode (@glassnode) July 1, 2026
Stablecoins Unaffected by Bitcoin Volatility
For payment companies, Bitcoin's price fluctuations are becoming less significant. Amram Adar, CEO and founder of Oobit, pointed out that significant drops like this elevate the crypto Fear and Greed index, which currently indicates an extreme fear level at 11. However, he believes that the adverse effects are no longer spreading. "Stablecoins are no longer tied to Bitcoin's volatility," he stated. "We see two distinct needs here: speculators on price and individuals seeking stable, global currency."
For the latter group, he noted, "stablecoin payments are already integrated into daily life," with demand increasing "month over month across all our key markets."
The sustainability of Bitcoin's recent bounce may depend on the upcoming U.S. jobs report: a weak figure could support the notion that the Fed's hawkish approach has peaked, while a strong report could push Bitcoin back towards its lows.