Bitcoin BITSTAMP:BTCUSD spiked to nearly $64,000 in the early hours of July 6, reaching $63,900 on CoinGecko, extending a weekend rally that liquidated hundreds of millions of dollars in short positions.
The move capped a sharp reversal from the $58,293 low Bitcoin touched on July 1. A softer-than-expected jobs report reshaped rate-hike expectations heading into the new week, helping Bitcoin’s price claw back.
Weak Jobs Data Triggers a Short Squeeze
The rally traces back to Thursday’s US Nonfarm Payrolls . The report showed the economy added just 57,000 jobs in June, far below forecasts. The miss lowered the odds of a near-term Federal Reserve rate hike, and Bitcoin had already gained ground on comments earlier in the week.
Lower Treasury yields and a weaker dollar reduced the opportunity cost of holding Bitcoin, helping the asset recover from a bearish June. Spot Bitcoin ETFs added to the momentum. An ETF inflow reversal snapped a 10-day run of redemptions, though the funds are still working through June’s record outflows of $4.5 billion.
Short Sellers Caught Off Guard
Traders lost over $450 million in short positions across the derivatives market as Bitcoin broke through $62,000. Bitcoin’s price reflected the broader squeeze dynamic, in which forced buybacks push the price into the next tranche of shorts.
Ether rose roughly 4% on the day and about 10% over the week, while Solana added nearly 19%, the strongest gain among major tokens. Institutional flows have not fully confirmed the move, with ETFs still recovering from their worst month on record.
Whether the squeeze becomes a durable trend remains an open question. Forced short-covering tends to produce fast price moves rather than sustained demand. The market now enters the third quarter with thinner liquidity, a dynamic that could cut in either direction.