Bitcoin Rebounds Above $60,000 After Brief Dip Below $58,000; Fed Rate-Cut Outlook Still Clouded

Bitcoin climbed back above $60,000 after briefly breaking below the $58,000 support level on Wednesday, according to QCP Capital. The cryptocurrency slid to around $57,700 before reversing course following stronger-than-expected U.S. June nonfarm payrolls data. Ethereum outperformed in the rebound, moving back above $1,700 and recovering nearly 10% from its midweek low. QCP said options markets quickly digested earlier panic. Short-dated implied volatility eased and the volatility term structure shifted back into contango. Trading activity concentrated in July-expiry call options, with volatility sellers regaining control. The payrolls report, though, was not seen as enough to signal a dovish turn from the Federal Reserve. Faster wage growth, a lower unemployment rate and resilient consumer spending point to continued room for a hawkish stance. Bitcoin spot ETFs posted a $224 million net inflow, snapping six consecutive sessions of net outflows. Even so, U.S. Treasuries and equities have yet to confirm a broader return of risk appetite, leaving the move looking more like a short-term crypto rally as investors watch for confirmation from other asset classes. (Source: BlockBeats)