Bitcoin Bounces Back to $61,000 Amid Weaker U.S. Rate Hike Outlook

Bitcoin, which had dipped below $60,000, has rebounded to the $61,000 range. This increase is attributed to weaker-than-expected U.S. employment data for June, which has diminished expectations for interest rate hikes by the Federal Reserve.

As of 8 a.m. on July 3, Bitcoin was trading at $61,441, up 1.66% from the previous day, according to global cryptocurrency market site CoinMarketCap.

Major altcoins also saw gains. Ethereum surged 4.62% to $1,696.96, while Binance Coin (BNB) rose 0.76% to $557.21. Ripple (XRP) and Solana (SOL) increased by 2.13% and 3.72%, trading at $1.08 and $80.61, respectively.

Market analysts believe that the disappointing U.S. employment figures have significantly reduced expectations for rate hikes, improving investor sentiment. According to Yonhap News, the Chicago Mercantile Exchange's FedWatch tool indicates that the probability of a rate hike at the Federal Open Market Committee (FOMC) meeting on July 29 is now below 30%. The likelihood of a hike in September has also dropped from 66% to 51%. The probability of rates being held steady for the remainder of the year increased from 17% to 23% in just one day.

However, the Fear and Greed Index, which reflects investor sentiment, remains at 21, indicating a state of fear and highlighting ongoing uncertainty in the cryptocurrency market. Notably, the world's largest Bitcoin holder, MicroStrategy, has recently announced plans to sell Bitcoin for the first time since it began accumulating the asset in 2020. Citibank has also lowered its 12-month price target for Bitcoin from $112,000 to $82,000, a reduction of over 20%, citing delays in cryptocurrency-related legislation.

Meanwhile, at the same time, Bitcoin was trading at 92,715,000 won ($60,106) on the domestic exchange Bithumb, down 0.40% from the previous day. The 'Kimchi Premium' was recorded at -1.63%, indicating that Bitcoin prices in South Korea are lower than those overseas.