Bitcoin rebounds to $63,195 as ETF inflows and leverage rise

Bitcoin recovered to about $63,195 on July 7, rising roughly 6.6% over seven days after last week’s selloff. US spot ETF flows flipped from outflows to inflows over several sessions while futures activity and leveraged positions increased.

The Bureau of Labor Statistics reported nonfarm payrolls rose by 57,000 in June, and revisions to April and May reduced prior estimates by a combined 74,000 jobs. The data was released ahead of the July price move.

ETF flow data showed a shift from $296 million of total outflows on July 1 to $223 million of inflows on July 2 and $265 million of inflows on July 6. Market participants identified those inflows as a visible channel of cash demand for the spot market.

On-chain analytics pointed to a reduction in selling pressure from spot trading and greater participation from long-term holders. At the same time, spot trading volumes remained muted relative to derivatives activity.

Derivative-market figures recorded about $46.7 billion in Bitcoin futures open interest on July 7 and roughly $81.2 billion in 24-hour futures volume for the same date. Spot trading volume over the same comparison period was near $5 billion. Funding on long positions increased alongside the rise in open interest.

Traders and analysts highlighted that rising open interest and higher long-side funding can amplify price moves when positions are leveraged. Liquidation data showed episodes of rapid short-covering during the recent rebound.

Market participants identified three variables to monitor in coming sessions: continued and steady ETF inflows beyond a single day, stronger spot trading volume that reflects fresh cash entering the market, and defense of the $61,000–$62,000 area on any retracement.

If ETF inflows slow and spot participation stays low while futures continue to account for most trading activity, market observers say the recovery could reflect short-covering and leverage rather than broad-based cash demand.

Bitcoin’s market capitalization was near $1.27 trillion on July 7. The token was up about 3% over 24 hours and roughly 8% over the past week. Traders continue to watch on-chain and derivatives indicators and macro data for signs of sustained buying or renewed volatility.