Bitcoin climbed 10% as investor confidence improved. (Photo illustration by Chesnot/Getty Images)
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Bitcoin prices climbed over the first several days of July, rising amid greater confidence in the digital asset.
The cryptocurrency’s price increased from approximately $58,250.00 on July 1 to nearly $64,000 on Monday, July 6, according to Coinbase data from TradingView.
Several analysts mentioned a lackluster U.S. jobs report, as well as the effect its data had on expectations for the Federal Reserve’s short-term policy moves, as playing a key role in these price movements.
Many investors are hoping that the Federal Open Market Committee will be more aggressive in loosening monetary policy now that Kevin Warsh has become the new head of the central bank.
“Cheap money is good for Bitcoin,” Sifling, wealth manager for Gerber Kawasaki Wealth & Investment Management, noted via email. “It always has been.”
He offered additional input on the upward climb that bitcoin enjoyed this month, stating that “The rally started with a hint. Fed Chair Kevin Warsh suggested AI productivity gains might help cool inflation, and traders took it as a sign that rate cuts are coming.”
“Then a lousy jobs report (57,000 new jobs, about half what economists expected) made those bets look even better,” added Sifling.
Eric Swartz, founding general partner of institutional crypto investment fund Panther Hollow Ventures, also commented on how Fed expectations have impacted bitcoin prices so far this month.
“Right now Bitcoin is trading like a pure rates asset,” he said via email. “The rally from the high‑$58Ks to almost $64K is basically the market pulling forward Fed‑easing expectations after a soft jobs report.”
Seller Exhaustion
Sifling cited another factor that caused bitcoin to rally this month, stating that sellers became fatigued by the rising prices.
“The other half of the story is that sellers simply ran out of steam,” he stated via email.
“When Bitcoin slipped below $58,000 on July 1, over a billion dollars in leveraged bets got wiped out,” said the analyst.
“Prices snapped back, shorts got squeezed, and suddenly the chart looked very different.”