Bitcoin rose above $61,000 on Friday and was tracking toward a weekly advance after softer-than-expected U.S. labor market data reduced near-term fears of a Federal Reserve interest rate hike. Improved demand for spot Bitcoin exchange-traded funds (ETFs) provided additional support for the largest cryptocurrency.
By 01:29 ET (05:29 GMT), Bitcoin last traded 1.9% higher at $61,632.5, extending a recovery from this week’s 21-month low beneath $58,000. The token had briefly surpassed $62,000 in the prior session and was on course for roughly a 3% gain over the week.
Market participants interpreted the latest U.S. payrolls data as evidence of cooling employment conditions, which in turn strengthened expectations that the Fed may hold off on raising interest rates in the immediate future. Lower short-term borrowing costs are typically conducive to risk-sensitive assets because they can ease liquidity constraints and reduce the discounting of growth-oriented assets.
At the same time, flows into spot Bitcoin ETFs shifted back into positive territory. Data from SoSoValue showed U.S. spot Bitcoin ETFs recorded net inflows of $221.7 million on July 2, snapping a run of 10 straight sessions of withdrawals that had placed downward pressure on prices.
That outflow episode contributed to Bitcoin losing more than 30% during the first half of 2026, marking its weakest six-month stretch in years amid waning institutional demand. The combination of reduced rate-hike risk and renewed ETF purchases appears to have steadied sentiment this week, though market participants remain attentive to incoming economic data.
"In the medium term, the biggest question is whether the run of data in the coming months proves strong enough to force the Fed’s hawkish bias into action, especially knowing that single rate hike cycles are extremely rare," an IG analyst said in a recent note.
Altcoins broadly participated in Friday’s rally. Ethereum, the market’s second-largest cryptocurrency, rose about 5% to $1,707.89. Ripple’s XRP increased roughly 3.3% to $1.09. Solana gained 3.5%, while Cardano climbed 6%. Meme token Dogecoin added about 2.6%.
From a market-structure perspective, the interplay between macroeconomic data and ETF flow dynamics remains the proximate driver of near-term price direction. Softer employment readings reduce the immediate likelihood of additional Fed tightening, which typically benefits liquidity-sensitive assets, while ETF flows can either amplify or blunt price moves depending on their direction and magnitude.
Market snapshot
- Bitcoin: $61,632.5, up 1.9% at 01:29 ET (05:29 GMT)
- Weekly performance: on track for ~3% rise
- Recent low: below $58,000 (21-month low earlier this week)
- Spot ETF flows: $221.7 million net inflow on July 2 (SoSoValue)
- First half 2026: Bitcoin lost more than 30%
As the market looks ahead, price action will likely remain sensitive to incoming U.S. macro prints and the pattern of institutional flows into or out of spot ETFs. Both elements have a material bearing on liquidity conditions and the valuation backdrop for cryptocurrencies.