Bitcoin Reclaims $64K as Reserve Delay and ETF Flows Reshape Market Outlook

Bitcoin climbed back to $64,034 on Tuesday, posting a 6.27% weekly gain after touching 21-month lows at the end of June. The rebound was fueled by a short squeeze that forced over $450M in liquidations above $62,000, while spot ETF inflows turned positive at $46.6M, snapping weeks of persistent institutional outflows. Trading volume surged to $37.52B over 24 hours, running more than 104% above its rolling average, a sign that fresh capital is entering rather than thin-market noise driving the move.

The macro backdrop gave traders additional cover to buy. A softer-than-expected June jobs report showed the U.S. economy added only 57,000 positions, well below the 100,000 analysts had forecast, and the unemployment rate dipped to 4.2%. As Yahoo Finance reported, those weaker numbers reduced the likelihood that the Federal Reserve would raise rates at its upcoming July meeting, lowering the opportunity cost of holding risk assets like Bitcoin and Ethereum.

Strategic Bitcoin Reserve Hits a Bureaucratic Wall

On the policy front, the Trump administration's proposed U.S. Strategic Bitcoin Reserve ran into a significant obstacle. According to CoinPedia, the Treasury and Commerce departments are locked in a dispute over which agency should oversee the initiative, delaying its launch indefinitely. The proposed reserve would hold 328,372 Bitcoin, valued at roughly $25B, that the federal government acquired through asset seizures. The Justice Department's Office of Legal Counsel is now mediating between both agencies as the White House finalizes the structure for the reserve and a separate Digital Asset Stockpile.

The delay arrives at a delicate moment. Bitcoin's Crypto Fear and Greed Index sits at 23, firmly in Extreme Fear territory, though it has risen 10 points from its recent trough as prices climbed back from $59,000. CoinDesk noted that Fed Chair Kevin Warsh's comment that inflation risks have come down, combined with the soft jobs print and a squeeze on bearish traders, carried Bitcoin from below $60,000 to above $63,000 in just five sessions. Analysts now watch $65,000 as the first meaningful resistance zone, with a sustained hold above that level seen as the trigger for a potential test of $66,000 to $67,000.