Cryptocurrencies experienced a sharp rally on July 2, 2026, fueled by a massive short squeeze and weaker-than-expected US employment data.
The move cooled fears of further interest rate hikes and pushed Bitcoin above $61,300.
>>> FIFA Technology Disallows Croatia Goal in World Cup Loss to Portugal
According to Coinglass data, the sudden price surge caught bearish traders off guard, leading to over $446 million in total market liquidations.
Approximately 95,650 market participants were forced to close their positions within 24 hours.
Short positions accounted for about $298 million of the liquidations, nearly double the $148 million lost by long traders.
Ethereum saw the largest share, with $157 million wiped out.
The single largest liquidation occurred on the Hyperliquid platform, where an Ethereum position worth $18.2 million was forcibly closed.
>>> Q-dance Broadcasts Defqon.1 Endshow on YouTube After Weather Cancellation
Major altcoins outperformed Bitcoin during the rally.
Weak Jobs Data Eases Rate Hike Fears
The market turnaround gained momentum after a US employment report showed weaker job creation than expected.
Wage growth continued its downward trend since 2022, hitting its lowest level since 2021.
This reduced pressure on the Federal Reserve to raise rates, weakening the US dollar and creating a supportive environment for risk assets.
US stock markets were closed at the time.
>>> Cruise Ship Captain Questioned After Passenger Falls into Greek Harbor
The price recovery also coincided with a reversal for US spot Bitcoin ETFs, which attracted fresh capital inflows, breaking a 10-day streak of consecutive outflows.
