Bitcoin Reclaims $63,000 as ETF Demand Returns and Shorts Cover

Bitcoin has passed the first hurdle of its latest rebound: it got its price back. The tougher test now is whether real buyers remain once the short squeeze and leverage-driven flows fade. BTC was trading near $63,195 on July 7, up 6.6% over the past seven days, according to CryptoSlate data. The move lifts Bitcoin back above the lows of last week's selloff, but the rally still needs to show sustained cash demand after short sellers finish buying back positions. A softer macro print has helped sentiment. The Bureau of Labor Statistics reported U.S. payrolls rose by 57,000 in June, while April and May were revised down by a combined 74,000 jobs. Weaker labor data can ease rate-pressure concerns that have weighed on risk assets, including Bitcoin. ETF flows also turned supportive at a key moment. Farside Investors data showed U.S. spot Bitcoin ETFs swinging from $296 million of net outflows on July 1 to inflows of $223 million on July 2 and $265 million on July 6. That stabilizes a visible demand channel, though a durable recovery typically needs confirmation beyond ETFs. Market structure remains the key variable. Glassnode's Week 28 market pulse said Bitcoin has been shifting from aggressive distribution toward equilibrium, with spot selling pressure easing, ETF outflows cooling, and long-term holders helping anchor the market. The report added that spot trading volumes were still subdued even as futures open interest and long-side funding increased, leaving the next leg dependent on participation beyond leverage. Derivatives positioning underlines the near-term risk: prices can climb quickly when futures traders cover shorts or rebuild leverage, then lose support once the forced buying passes. CoinGlass showed roughly $46.7 billion in Bitcoin open interest on July 7, with 24-hour futures volume near $81.2 billion versus about $5 billion of spot volume. Liquidation dynamics can accelerate squeezes, reinforcing the case for caution around a derivatives-heavy rebound. The next checkpoints are straightforward. ETF inflows need to extend beyond one or two sessions. Spot volume needs to improve without futures leverage doing most of the work. Buyers also have to defend the $61,000–$62,000 area if Bitcoin pulls back again. If those signals hold, the July rally starts to look like the start of a new base. If they fade, the push toward resistance may prove to be macro relief and short covering rather than lasting demand. For now, follow-through is the market's burden: sellers have lost momentum, and buyers now need to show they'll stay.