Bitcoin climbed back to $62,952, a 1.43% gain, after bouncing off last week's lows and triggering approximately $504 million in short liquidations — the largest single-day hit to bearish traders since late April. Ethereum followed with a sharper 3.30% move to $1,666, lifting the total crypto market cap to $2.25 trillion.
Why it matters
The liquidation cascade signals that a meaningful portion of the market was positioned for further downside, and the forced unwind of those shorts provided additional upward fuel to the rebound. Despite the price recovery, sentiment remains deeply cautious: the Fear & Greed Index sits at 8 (Extreme Fear), and BTC dominance holds at 56.2%, suggesting capital is not yet rotating broadly into altcoins. The Altcoin Index at 47/100 confirms that the relief rally is still concentrated in the majors.
Market impact
All eyes now turn to upcoming U.S. inflation data, which carries the potential to either validate or reverse this bounce. A hotter-than-expected print could revive Fed rate hike expectations — a headwind that already weighed on sentiment after U.S. job growth blew past forecasts. Bitcoin ETF outflows reached $1.72 billion in a single week, a figure that underscores how institutional positioning remains defensive even as spot prices recover. Small-cap names saw outsized moves — Yooldo (+70.6%), DAO Maker (+49.1%), and Allora (+41.2%) led gainers — but these are thin-liquidity pops in an Extreme Fear environment, not a broad risk-on signal.
Source: [source](http://telegraph.controller.bot/files/8336652911/AgACAgIAAxkBAAI4M2ombOYKxJsrdYMh1tKUkcG4z_ctAAIBGWsbqA85SdorOBbdDe6WAQADAgADeQADOwQ)
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