Crypto markets surge over holiday weekend amid positive ETF flows and signals suggesting a potential market bottom.
Macro & Markets ·
Crypto markets rallied over the July 4 holiday weekend as spot Bitcoin ETFs swung to net inflows of $223.5 million on July 2, reversing a month-long outflow streak that had exceeded $4 billion in June. Bitcoin climbed to over $63,000, up 5% on the week, while altcoins outpaced it—Ethereum gained 12% to $1,770, Solana rose 11% to $81, and LIT surged 44% to $2.50 following its Robinhood integration. Ethereum ETFs also posted inflows totaling approximately $44 million across July 1 and July 2.
The reversal followed a softer-than-expected June employment report, which eased rate-hike concerns and opened room for risk assets to move higher. The shift marked a turning point after Bitcoin's worst first half since 2018 and 2022, with the asset having touched a 21-month low of $57,950 at the start of July. Data showed whale accumulation diverging from institutional ETF selling throughout June, with large holders purchasing roughly $16.7 billion of Bitcoin over two weeks—a pattern historically associated with market bottoms.
Whether this momentum persists remains uncertain as full market liquidity returns. One or two days of green flows do not reverse a month of record outflows, though the recent combination of positive ETF inflows and altcoin outperformance signals a potential shift in sentiment after weeks of sustained selling pressure.