Weak jobs kills Fed hike fears — institutions pile into Bitcoin ETFs and force a short squeeze
The June jobs report was so weak that the Fed is now expected to hold off on raising interest rates. That shift in expectations has triggered a wave of institutional money back into Bitcoin ETFs, and traders who bet against crypto are being forced to buy back in, pushing prices even higher.
Idea
The shockingly weak June jobs report (only 57,000 jobs added versus 115,000 expected) has convinced the market that the Fed is done hiking rates. Lower-for-longer interest rates tend to boost risk assets like cryptocurrencies because they reduce the opportunity cost of holding non-yielding assets. This macro shift directly triggered a massive $221.7 million inflow into spot Bitcoin ETFs, breaking a painful 10-day outflow streak. When institutional money returns this forcefully, it often forces bearish traders to cover their short positions, creating a 'short squeeze' that accelerates price gains — exactly the dynamic lifting Bitcoin toward $62,000 and Ethereum up 10% on the week.