Labor Market Pressure Eases as Bitcoin Surges to 62000 Causing 158 Million Liquidation of Short Positions

Yesterday, the United States reported that the number of initial jobless claims stood at 233,000, lower than the expected 241,000, and a decrease of 17,000 from the previous figure, marking the largest drop in nearly a year. Following the data release, investor concerns regarding a collapse in the labor market eased, leading to a broad rally in global risk assets, with Bitcoin momentarily surpassing $62,000 and the global cryptocurrency market capitalization rising over 6%.
According to data from Coinglass, approximately $220 million in liquidations occurred across the network in the past 24 hours, with short positions accounting for about $158 million.



Chris Burniske, former head of crypto operations at Ark Invest and current partner at Placeholder VC, posted on X, indicating that market sentiment has reset and leverage has been cleared. He noted that most high-quality crypto assets are currently at a low point significantly higher than what was seen in 2023. Meanwhile, global central banks are likely to be forced to ease policies, and market volatility in the third quarter is expected to intensify. Regardless, the current situation represents a favorable early stage of a bull market