Bitcoin ETFs see biggest inflow since May after weak US jobs report sparks BTC price rebound

Here is the latest from the digital-asset markets: US spot Bitcoin exchange-traded funds (ETFs) drew their largest daily inflow since May after a weaker-than-expected jobs report eased rate-hike concerns and helped the digital asset recover from a fresh bear-market low earlier in the week. The funds recorded $223 million in net inflows on Thursday, ending a 10-day stretch of withdrawals that had drained $2. 73 billion from the products, according to SoSoValue data.

The reversal came as Bitcoin briefly climbed back above $62,000 after falling below $58,000 earlier in the week, its lowest level in 21 months. The return of ETF demand gave Bitcoin a measure of relief after weeks of pressure from fund redemptions, rising real yields and concern that the Federal Reserve could keep monetary policy tighter for longer. Still, the one-day inflow only partly offsets the scale of recent selling.

Market Dynamics

Bitcoin ETFs have recorded nearly $8. 5 billion in net outflows since early May, according to Santiment. Bitcoin ETFs Outflow (Source: Santiment) That leaves the market trying to determine whether this recent inflow marks the start of renewed demand or a short-term rebound after a crowded selloff.

Some analysts view extended outflows as a sign that weaker holders have already reduced exposure, but the market has yet to show that buyers are willing to return for more than a single session. Payroll slowdown eases rate pressure The labor report gave investors a reason to reassess the timing of the Fed’s next move. US employers added 57,000 jobs in June, roughly half of what economists had expected.

The Bureau of Labor Statistics also revised April and May payrolls lower by a combined 74,000 jobs, weakening what had appeared to be a more resilient hiring trend. The unemployment rate slipped to 4. 2%, but the decline came as the labor force shrank.

Market Impact

About 720,000 people left the labor force in June, pushing the participation rate down to 61. The household survey also showed employment falling by 507,000, adding to signs that the headline unemployment rate understated the extent of the slowdown. Hiring was concentrated in a narrow group of sectors.

Education, health care and social assistance added 69,000 jobs, more than the overall increase in payrolls. Leisure and hospitality payrolls declined, missing expectations for seasonal hiring tied to global sporting events, while government payrolls rose by just 8,000. While the report did not point to broad job destruction, it showed a labor market losing momentum.

Rick Rieder, BlackRock’s chief investment officer of global fixed income, described the US jobs report as “more fizzle than fireworks,” saying the broader picture still suggests gradual cooling rather than a sharp break in employment. According to him: “One month's payroll report rarely defines a trend. Looking across the broader labor market, we continue to see an economy that is cooling gradually, not one experiencing widespread job destruction.

This shift continues to shape the digital-asset landscape, with analysts examining its near-term effects.