Bitcoin reclaimed the $61,000 mark following weak US jobs data and a rotation of capital from overheated AI stocks. Onchain indicators suggest seller exhaustion, while reduced inflationary pressure ma
In recent trading sessions, Bitcoin (BTC) held steady at around $61K after the release of soft U.S. jobs data, which eased fears of imminent interest rate hikes from the Federal Reserve (Fed). The June non-farm payrolls report showed a mere 57,000 job gains compared to expectations of 113,000, while April and May figures were revised downward by 74,000 jobs. This data shift prompted traders to reduce their bets on September rate hikes from 64% to 54%, as indicated by the CME FedWatch Tool.
The market's response was notable: The Nasdaq Index sold off while Bitcoin distanced itself from its recent low of $57,750. This rotation is seen as a potential positive for BTC and gold, which traditionally benefit from reduced interest rate expectations. Gold prices also reacted positively on Thursday, hinting at bullish momentum in scarce assets.
Onchain indicators provided further support to the rally, with gaah_im noting that Bitcoin's realized profit-to-loss ratio had hit its lowest level since 2022. The net percentage of supply in profit turned negative, historically marking cycle bottoms with extreme precision according to onchain analyst CryptoQuant author gaah_im.
However, some of this strength may stem from disappointment among investors regarding MicroStrategy’s (MSTR) share issuance strategy. Despite a healthy leverage and enterprise value, holders faced dilution as the company used accelerated MSTR share issuance for debt buybacks and covering preferred stock dividends.
Looking ahead, if weakness in the AI sector accelerates—especially among chipmakers like SanDisk, Seagate, Western Digital, and Applied Materials—the capital rotation could intensify. This scenario suggests a near-term recovery to $70K is possible as traders seek alternative assets such as gold and Bitcoin. The broader implications include increased monetary expansion due to reduced inflationary pressure, potentially leading to further liquidity injection into the market.
Traders should monitor these developments closely, particularly onchain data trends and AI sector performance, for signs of a sustained recovery or potential volatility.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.