Bitcoin, Ether and XRP rebound, short sellers trapped

The historic volatility of cryptos has once again reminded market operators that short-term certainties do not exist in this universe. This Thursday, July 2, the ecosystem recorded a technical reversal, inflicting outright financial losses on investors positioned on the downside. Indeed, this sudden burst, occurring after several days of bearish pressure, redefines short-term price dynamics for the main market assets. Understanding the inner workings of such a purge is essential today, as it illustrates the extreme sensitivity of the crypto market to leverage and global macroeconomic indicators.

Bitcoin: cleaning up short positions on the derivatives market

The rebound of the crypto market, after a violent decline, observed over the last 24 hours has completely reversed the bearish strategies of investors, leading to major price movements and massive losses on derivative products:

• The surge of bitcoin (BTC): the first crypto on the market crossed the $62,000 mark for the first time in more than a week, touching a local high at $62,078 after having sunk below $58,000 earlier in the week (a 21-month low). It then stabilized around $61,650, up 3% on the day and 4% on the week;
• The scale of the overall liquidations: the technical purge totaled $602 million in 24 hours, with short positions accounting for the vast majority of the carnage with $400 million in net losses;
• The case of Ethereum (ETH): importantly, ETH overtook bitcoin by becoming the leading contributor to forced liquidations with $187 million lost by its traders, compared to $184 million for BTC, bringing its price to $1,701 (nearly 5% increase);
• The performance of Solana (SOL) and XRP, for its part, rose more than 3% to trade at $1.09.

This exceptionally large-scale technical purge demonstrates the speed with which forced liquidations can feed into each other. The simultaneous reversal of the main altcoins confirmed that the market was trapped by an excessive accumulation of highly leveraged short positions, turning simple technical resistance into a powerful global short-covering rally.

Macroeconomic catalysts and US employment indicators

This upward turnaround in the capital markets finds its direct source in the latest economic publications and the orientations of monetary policy in the United States. The rebound began the day after statements by Federal Reserve Chairman Kevin Warsh, who deliberately kept the financial institution's future intentions unclear. Indeed, investors reacted positively when the manager “declined to say whether the agency expected rate hikes, but later this year”.

Following this intervention, interest rate traders now estimate the odds are almost evenly split on whether the Fed will hold or raise rates at the September meeting. On the other hand, they still project a 64% probability that an interest rate hike will occur between now and the October FOMC meeting.

The upward movement intensified on Thursday after the Bureau of Labor Statistics announced that American employers created only 57,000 jobs in June. This figure turned out to be much lower than the initial objective of 115,000. Moreover, it was a clear decline compared to the 129,000 jobs recorded in May according to the revised figures.

This marked decline in American employment has paradoxically boosted global risky assets, particularly bitcoin, moderating fears of prolonged monetary tightening on the part of central bankers. While traditional markets reacted mixed, with the S&P 500 and Nasdaq closing lower while the Dow Jones remained in the green, the crypto sphere took advantage of this slowdown to begin its technical relief rally.

The reaction of stock markets and the surge in stocks correlated to Web3

The impact of this price rebound was not limited only to the portfolios of retail investors, it also shook the shares of listed companies in the crypto sector. Strategy by Michael Saylor, who today remains the largest corporate holder of bitcoin in the world, saw his stock appreciate by nearly 7% to reach $100.

This recovery is all the more important because the stock had fallen to almost $80 the previous week. In the same upward dynamic, the action of the American exchange platform Coinbase increased by 3.35% to settle at $165. Circle, the issuer of the stablecoin USDC, completed this positive picture by registering an increase of almost 5% to reach $65, showing strong resilience.

The future implications of this global movement, however, invite a nuanced analysis of the macroeconomic structure of the market. If this technical surge validates the immediate responsiveness of cryptos to signals from the Fed and illustrates the permanent danger of leverage for sellers, the underlying trend requires real ethical caution. Taking the necessary step back, bitcoin still shows a decline of 16% over the last month and above all is moving around 52% below its historic record of nearly $126,000 established in October 2025.