Bitcoin Rebounds Above $61,000 as Soft U.S. Jobs Data, ETF Inflows Support Prices

Bitcoin Recovers from 21-Month Low

Bitcoin traded 1.9% higher at $61,632.5 by 01:29 ET (05:29 GMT) on Friday, continuing its recovery from a drop below $58,000 earlier in the week, its lowest level in 21 months. The token briefly topped $62,000 in the previous session and was on track for a 3% weekly rise.

The move followed the latest U.S. labor market data, which indicated cooling employment conditions. The figures reinforced expectations that the Federal Reserve may refrain from raising interest rates in the near term. Lower borrowing costs generally support risk-sensitive assets such as cryptocurrencies by improving liquidity conditions.

Despite the latest rebound, Bitcoin lost more than 30% during the first half of 2026, marking its weakest six-month performance in years amid signs of weakening institutional demand.

An analyst at IG noted in a recent commentary that, in the medium term, the key question is whether upcoming economic data will be strong enough to prompt the Fed to act on its hawkish bias, adding that single rate hike cycles are extremely rare.

ETF Flows Turn Positive as Altcoins Advance

Market sentiment was also bolstered by a shift back to net inflows for U.S. spot Bitcoin ETFs after several weeks of persistent outflows that had weighed on prices. Data from SoSoValue showed net inflows of $221.7 million on July 2, ending a run of 10 consecutive trading sessions of withdrawals.

The broader cryptocurrency market saw gains alongside Bitcoin. Ethereum, the second-largest cryptocurrency by market capitalization, rose 5% to $1,707.89. XRP, the third-largest token, added 3.3% to trade at $1.09.

Other major altcoins also advanced, with Solana up 3.5% and Cardano jumping 6%. Among meme tokens, Dogecoin gained 2.6%, reflecting broad-based buying across the crypto complex on Friday.

FAQ

Why did Bitcoin rise above $61,000 on Friday?
Bitcoin rose above $61,000 as softer U.S. jobs data reduced expectations of a near-term Federal Reserve rate hike and as U.S. spot Bitcoin ETFs returned to net inflows, helping stabilize sentiment.

How did U.S. spot Bitcoin ETFs perform recently?
U.S. spot Bitcoin ETFs recorded net inflows of $221.7 million on July 2, according to SoSoValue, ending a streak of 10 consecutive sessions of net withdrawals.

How has Bitcoin performed so far in 2026?
Bitcoin fell more than 30% during the first half of 2026, its weakest six-month performance in years, amid weakening institutional demand.

Which major altcoins gained alongside Bitcoin?
Ethereum climbed 5% to $1,707.89, XRP rose 3.3% to $1.09, Solana gained 3.5%, Cardano advanced 6%, and Dogecoin increased 2.6%.