Bitcoin reclaimed the $61,000 level after Federal Reserve Chair Kevin Warsh said inflation risks had eased while keeping the central bank’s 2% target in place.
BTC recently traded near $61,600, up about 5% over 24 hours, after falling to a July 1 low near $57,748. The move put Bitcoin back above $60,000 but still below the $63,500 area tied to the recent 200-week SMA setup.
Warsh told the European Central Bank forum in Sintra, Portugal, that the Fed would not accept an inflation objective above 2%. He also avoided forward guidance for the July 28-29 policy meeting, saying the rate decision would be debated behind closed doors.
The ECB forum comments followed Bitcoin’s weakest stretch of the year, with BTC trading near 21-month lows as ETF redemptions, treasury-company pressure and weak spot demand weighed on the market.
ETF Outflows Still Weigh On June
Bitcoin’s rebound followed a rough June for regulated fund demand. U.S. spot Bitcoin ETFs recorded heavy redemptions through the end of the month, including a worst weekly outflow of about $1.79 billion between June 22 and June 26.
Farside’s Bitcoin ETF flow table also listed negative daily totals into month-end, including $444.5 million of outflows on June 26, $231 million on June 29 and $212.4 million on June 30. The June outflow total was later estimated near $4.5 billion across U.S. spot Bitcoin ETFs.
That fund pressure kept Bitcoin’s recovery smaller than prior rebound attempts. BTC had already been trading below long-term moving-average levels, while recent BlackRock Bitcoin flow scrutiny kept ETF custody, redemption and Coinbase Prime movements in focus during the drawdown.
Shorts Get Hit During Rebound
The move back above $60,000 also hit short positioning. CoinGlass liquidation tracking placed 24-hour crypto liquidations in the hundreds of millions during the rebound, with short positions forced out as BTC climbed from the high-$50,000 range.
The liquidation move does not confirm a market bottom. Short liquidations can extend a rebound by forcing traders to buy back into a rising market, but the same structure can fade if spot demand, ETF flows or macro conditions weaken again.
Bitcoin remains below the 200-week SMA level recently watched around $63,500. A move back above that area would place BTC closer to its long-term cycle average, while continued trading below it keeps the market near the same stress zone that defined the late-June selloff.
As of July 2, Bitcoin traded near $61,600, after a 24-hour range that reached about $58,600 on the downside and $61,600 on the upside.
