Bitcoin Rebound, Market Caution
Bitcoin Reclaims $60,000 Amid Cooling Inflation, But ETF Outflows Fuel Market Caution
Anonymous
Key Points
1
Fed policy path remains unclear after the data; Fed Governor Kevin Warsh offered no definitive signal on whether the next rate move would come in July or September, keeping markets in suspense about the near-term trajectory.
2
June saw spot Bitcoin ETFs record their worst month on record with net outflows of about $4.5 billion, highlighting a potential capitulation event even as prices rebound.
3
Buy-side depth is thickening on major exchanges, with long-term holders resume accumulation and deeper buy orders evident on venues like Binance and Coinbase, signaling underlying support despite volatility.
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The near-term technical setup points to a test of the upper Bollinger Band around 60,700, with the EMA50 around 60,421 acting as a dynamic resistance and the EMA200 at 65,290 as a longer-term cap, suggesting a move toward the 61,000 zone if resistance is breached.
5
A cooler dollar and a crowded USD long position add to the bullish backdrop, with observers noting a potential change in the broader dollar trend that could support another leg higher for BTC.
Bitcoin reclaimed the $60,000 level on July 1, 2026, rebounding from a daily low of $57,779 after softer US economic data weakened the case for more Federal Reserve rate hikes. Decrypt reported the move came after ADP data showed only 98,000 private-sector jobs were added in June, well below the expected 113,000.
The bounce arrives at a turbulent moment. June 2026 was the worst month on record for spot Bitcoin ETFs, with net outflows of $4.5 billion, according to The Block. Yet on-chain signals suggest long-term holders are quietly buying at these levels, raising questions about whether the selloff has finally run its course.
Weak Jobs Data and Cooling Inflation Spark the Rebound
Two key data releases on July 1 shifted the mood. The ADP payroll report showed just 98,000 new jobs in June, missing the 113,000 forecast. Hours later, the ISM Manufacturing Index eased to 53.3, down from 54.0 in May. Mitrade noted both readings pointed to a cooling economy that gives the Fed less reason to raise rates.
Fed Chair Kevin Warsh, speaking at an ECB forum in Sintra, Portugal, said inflation expectations have "come down" and pledged to "deliver price stability." But he offered no clue on whether a rate cut would come in July or September. Cryptonews reported that his refusal to give clear guidance left markets guessing about the Fed's next move.
Record ETF Outflows Signal Institutional Capitulation
June 2026 saw $4.51 billion flow out of spot Bitcoin ETFs — the worst month since they launched in January 2024. BlackRock's IBIT alone shed roughly $3.55 billion, including a single-day outflow of $300.4 million on June 29, according to SoSoValue. Total ETF net assets fell from $94.1 billion to $70.9 billion over the month.
Analysts at Wintermute warned of "more pain into September," calling the ETF selloff a sign that smart money is stepping back. Adding to the pressure, Strategy — formerly MicroStrategy and one of Bitcoin's biggest corporate holders — approved a sale of over $1 billion in BTC to cover treasury needs, Binance reported, denting the firm's long-held "never sell" image.
Whales and Long-Term Holders Fill the Gap Left by ETFs
While ETFs sold, a different group was buying. Decrypt noted that buy-side order depth is thickening on major exchanges like Binance and Coinbase. Long-term holders — wallets that have not moved coins for at least six months — have resumed accumulation in the $58,000–$60,000 range, suggesting that patient investors see current prices as a bargain.
CryptoQuant's head of research, Julio Moreno, struck a more cautious tone. He noted on X that "Bitcoin ETF holdings are now lower than at this same day last year," flagging a real contraction in institutional demand. The picture is mixed: retail and long-term buyers are stepping up, but large fund money has not yet returned.
Bitcoin Faces Key Technical Tests Near $61,000
Traders are now watching a tight cluster of resistance levels. The EMA50 sits at $60,421, the upper Bollinger Band is near $60,700, and the psychological barrier at $61,000 looms just above. Investtech flagged that while the bounce from oversold territory — RSI was at 33.7 — is a healthy sign, clearing $61,000 is essential to confirm any real trend change.
Beyond that, the EMA200 at $65,290 acts as a longer-term ceiling. A weaker US dollar and crowded short positions in the greenback add a tailwind, but Bloomingbit cautioned that Friday's official Nonfarm Payrolls report will be the next major test. A soft number could push Bitcoin toward $61,000; a hot one could send it back toward $57,779 support.
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