Bitcoin moved above $63,000 during Asian trading on Monday, extending last week’s recovery. Softer U.S. economic data reduced expectations of a near-term Federal Reserve interest rate hike, while fresh inflows into spot Bitcoin ETFs helped improve market sentiment.
The world’s largest cryptocurrency was last trading 0.8% higher at $63,227.5 by 01:18 ET, or 05:18 GMT. Bitcoin had also reached a two-week high near $64,000 in the previous session.
Bitcoin Extends Last Week’s Rally
Bitcoin gained around 5% last week after rebounding from a 21-month low below $58,000 earlier in the week.
The move marked a sharp recovery after a difficult June, when Bitcoin came under pressure from tighter financial conditions and profit-taking after its earlier rally this year.
Fed Rate Hike Fears Cool
Market sentiment improved after weaker-than-expected U.S. June payrolls data supported expectations that the Federal Reserve may avoid raising interest rates this year.
Investors also reacted positively to comments from Federal Reserve Chair Kevin Warsh. He said inflation had continued to moderate and repeated that policymakers would remain data-dependent.
Those remarks encouraged markets to reduce expectations for additional monetary tightening.
Spot Bitcoin ETF Inflows Support Sentiment
Investor confidence also improved after U.S. spot Bitcoin exchange-traded funds returned to net inflows following several weeks of outflows.
The renewed ETF demand suggested that institutional interest in Bitcoin may be stabilizing. This helped support the broader recovery in crypto markets.
Analysts Remain Cautious
Despite the rebound, analysts warned that trading volumes remain relatively low. They said Bitcoin may need continued ETF inflows and supportive macroeconomic data to maintain its recent gains.
The recovery could lose momentum if investors begin pricing in tighter financial conditions again or if ETF demand weakens.
Fed Minutes and Key Bitcoin Levels in Focus
This week, traders will closely watch the minutes from the Federal Reserve’s June policy meeting. The report could provide more clues about the future path of U.S. interest rates.
Markets will also monitor whether Bitcoin can stay above the $63,000 to $64,000 range. A sustained move above this area could help extend the current recovery.
