Bitcoin and Ethereum ended the week with solid gains as risk appetite returned to the cryptocurrency market, helped by slower spot ETF redemptions, softer U.S. labor data and improving liquidity across major digital assets.
Bitcoin rose about 6.8% for the week, while Ethereum climbed roughly 12.2%, marking a clear shift from the previous period of defensive positioning. The rebound came as spot ETF outflows eased and derivatives activity picked up, suggesting traders were becoming more willing to take risk after weeks of pressure.
Spot Bitcoin ETFs still recorded a weekly net outflow of about $1.787 billion, but the pace of withdrawals slowed. Ethereum ETFs saw a much smaller weekly withdrawal of about $13.65 million before turning to mild inflows at the start of July. The change did not amount to a full reversal in institutional sentiment, but it showed that heavy redemption pressure was beginning to fade.
The improvement was also supported by U.S. macroeconomic data. June nonfarm payrolls increased by only 57,000, well below expectations of 115,000. The weaker jobs figure reduced concerns that the Federal Reserve would need to keep tightening monetary policy aggressively, giving support to risk assets including cryptocurrencies and equities.
U.S. Treasury yields moved lower at the short end of the curve. The 10-year Treasury yield finished the week near 4.45%, while the 2-year yield declined to about 4.13%. U.S. stocks also advanced, with the Dow Jones Industrial Average gaining around 2.0%, the S&P 500 rising 1.8% and the Nasdaq Composite adding 2.1%.
The combination of softer labor data, stronger equities and slower ETF outflows helped stabilize crypto markets after earlier weakness. Still, the recovery remained selective, with traders favoring deeper markets such as Bitcoin, Ethereum, Solana and established lending and staking protocols.
etf flows begin to stabilize
Fund-flow data showed that digital asset ETFs remained under pressure, but the intensity of selling eased. Bitcoin ETFs continued to see net weekly withdrawals, yet daily flows became less one-sided heading into early July. Ethereum ETFs showed a more noticeable improvement, moving from modest weekly outflows to small inflows.
That shift matters because spot ETF activity has become one of the most closely watched indicators of demand for major cryptocurrencies. Strong inflows often support price momentum, while sustained outflows can deepen selling pressure. The latest data suggested that large-scale redemption pressure was no longer accelerating.
The relative strength in Ethereum was also notable. Ethereum’s weekly gain of about 12.2% outpaced Bitcoin’s 6.8% rise, helped by improving ETF flows, stronger activity in staking-linked assets and renewed demand for Ethereum-based collateral in lending markets.
Bitcoin remained the main benchmark for broader market sentiment, but Ethereum’s outperformance showed that traders were again willing to move beyond the safest crypto asset and take exposure to higher-beta segments of the market.
derivatives activity points to cautious risk taking
Derivatives data showed that risk appetite was returning, but not in an extreme way. Bitcoin open interest rose from around $20.5 billion to about $22 billion during the week. Open interest measures the value of outstanding futures and perpetual contracts, so a rise often shows that more leveraged positions are being built.
Funding rates stayed positive, mostly between 0.003% and 0.006%. Positive funding means long-position traders are paying short-position traders, which usually reflects stronger demand for upside exposure. The level of funding, however, remained relatively moderate, suggesting that leverage was increasing without reaching overheated conditions.
Options activity also expanded, especially in monthly contracts. At the same time, implied volatility gauges fell from around 46–48 to about 39–40. Lower implied volatility indicates that options traders were pricing in less risk of sharp near-term price swings.
That combination is important. Rising open interest and positive funding show renewed demand for leveraged exposure, while lower implied volatility suggests that traders do not expect extreme turbulence in the immediate term. In practical terms, the market was becoming more active but not yet showing the kind of panic or euphoria that often precedes sharp reversals.
macro backdrop supports risk assets
The weaker U.S. labor report was one of the main drivers behind the broader improvement in market tone. A smaller-than-expected increase in jobs reduced pressure on the Federal Reserve to maintain a more restrictive stance.
For crypto traders, interest rate expectations remain central. Higher rates can reduce demand for speculative assets because safer instruments, such as government bonds, offer more attractive yields. Lower rate expectations can have the opposite effect, making risk assets more appealing.
The decline in the 2-year Treasury yield to 4.13% was especially important because that maturity is highly sensitive to expected Federal Reserve policy. The 10-year yield near 4.45% still showed that long-term borrowing costs remained elevated, but the short-end move helped ease financial conditions.
Equity market gains reinforced the risk-on tone. The Nasdaq, which is heavily weighted toward technology and growth shares, rose about 2.1%. Crypto markets often trade in line with growth assets during periods when macroeconomic policy is the main driver.
decentralized exchange activity remains uneven
On-chain trading activity improved in some areas but remained mixed across decentralized exchanges. Uniswap and PancakeSwap saw softer volumes, while Solana-based PumpSwap continued to grow rapidly.
The growth of PumpSwap highlighted ongoing migration of activity toward faster and lower-cost blockchain environments. Solana-based protocols have benefited from high transaction throughput and low fees, which are attractive for active traders, particularly in smaller tokens and fast-moving markets.
PumpSwap has become an important source of trading-related revenue within the Solana ecosystem. Its expansion has helped draw liquidity, transaction fees and user activity into Solana-based applications at a time when some Ethereum-based decentralized exchanges have seen slower growth.
This does not mean Ethereum’s role has weakened structurally. Ethereum remains the leading network for large-scale decentralized finance, collateralized lending and liquid staking. However, the latest weekly data showed that Solana continued to gain share in high-frequency retail-style trading activity and speculative token flows.
stablecoin supply remains a weak point
Stablecoin circulation remained soft, showing that the broader liquidity recovery was still incomplete. Stablecoins are important because they function as cash-like instruments in crypto markets. Rising stablecoin supply often supports buying power, while weak or falling supply can limit the strength of a rebound.
USDC received a boost from institutional developments after BNY Mellon confirmed support for custody and minting. That move expanded regulated access channels for the dollar-backed token and strengthened its role in institutional settlement and liquidity management.
At the same time, borrowing rates for USDC on Aave moved higher, pointing to tighter demand for dollar liquidity. When borrowing rates rise, it can signal that more traders want stablecoins for leverage, collateral management or short-term positioning. Ethereum-denominated loans were steadier, suggesting that demand pressure was more concentrated in dollar liquidity than in ETH borrowing.
Tether and Circle continued to generate steady base revenue from stablecoin activity, but overall stablecoin circulation did not show the same strength as major token prices. That gap suggests the market rebound was being driven more by repositioning, derivatives activity and asset rotation than by a broad expansion of fresh stablecoin liquidity.
liquid staking tokens recover with eth and sol
Liquid staking tokens rebounded alongside the underlying assets they track. Ethereum-based staking protocols such as Lido, Rocket Pool and StakeWise regained value after declines in the prior week. Solana-based staking products, including Jito and Sanctum, also advanced.
Liquid staking tokens allow holders to earn staking rewards while keeping a tradable token that can be used across decentralized finance. Their prices often move with the underlying asset, but they can also reflect confidence in staking demand and protocol liquidity.
Total value locked, measured in U.S. dollars, increased across liquid staking markets in line with the recovery in ETH and SOL prices. The rise was partly due to asset price gains, but it also showed that traders were becoming more comfortable redeploying capital into yield-bearing crypto assets.
The rebound in staking products was another sign that the market had moved away from forced selling and toward selective risk taking. However, the recovery remained tied to the performance of major assets. If ETH or SOL were to reverse sharply, liquid staking tokens would likely come under pressure again.
lending activity favors established networks
Lending protocol balances rose mainly on the Ethereum mainnet, where liquidity is deeper and collateral markets are more mature. Aave saw stronger balances on Ethereum as traders preferred assets with clearer collateralization metrics and more reliable liquidity.
Markets on Arbitrum, Base and Mantle saw moderate activity, while newer chains such as Plasma and MegaETH declined. The pattern showed that during early recovery phases, traders often return first to established ecosystems rather than newer or less liquid networks.
This preference is not unusual. When markets stabilize after a decline, traders tend to prioritize venues where liquidity is deepest and liquidation risks are easier to manage. Newer networks can attract activity during more aggressive risk-on periods, but they may lag when market confidence is only beginning to recover.
The increase in USDC borrowing rates also fit this pattern. Traders were seeking dollar liquidity, but they appeared to favor platforms and networks with strong collateral markets rather than moving broadly into newer chains.
tokenized gold draws steady demand
Trading data for XAUT, a gold-backed token, showed net buying flows between roughly $500,000 and $800,000 on several days. Those flows helped lift the token’s price from around $4,000 to the $4,160–$4,180 range.
The buying appeared to reflect depth in the market rather than short-term price noise. Persistent buy-side absorption around higher levels suggested that some traders were using tokenized gold as a defensive or diversification tool while still operating within digital asset markets.
The $4,150 area has become a key liquidity support zone for XAUT. If buying demand continues to appear near that level, it could remain an important reference point for short-term trading. A clear break below it, however, would suggest that support has weakened.
Tokenized commodities remain a smaller segment of the digital asset market, but the latest activity showed that demand for real-world asset exposure continues to develop. Gold-linked tokens can appeal to traders who want exposure to traditional safe-haven assets without leaving blockchain-based markets.
protocol revenue shifts toward solana activity
Protocol revenue trends also showed a shift in market activity. Stablecoin issuers such as Tether and Circle continued to produce steady baseline income, but faster growth came from Solana-based projects including Pump.fun, PumpSwap and Phantom.
This trend reflected the strong pace of activity in Solana’s trading ecosystem. High-volume token launches, active decentralized exchange trading and wallet usage helped generate fees across Solana-linked platforms.
Perpetual derivatives protocols such as Hyperliquid saw revenue moderate from the previous week, but they still contributed significantly to overall on-chain fees. Derivatives remain a major part of crypto market structure because they allow traders to take leveraged positions without directly holding the underlying asset.
The moderation in perpetual protocol revenue was consistent with a calmer volatility backdrop. Trading remained active, but lower implied volatility and more stable spot prices reduced the intensity of short-term derivatives turnover.
traditional market links continue to expand
Crypto-linked platforms offering exposure to traditional financial products also saw continued activity. Total weekly platform turnover across traditional finance-linked products reached about $85 billion, down from $98 billion in the previous week but still above May levels.
Contracts for difference accounted for roughly 95% of share-based perpetual trading. Share-based perpetual products made up about 60% to 65% of perpetual product activity, showing that traders are increasingly using crypto-style trading infrastructure to gain exposure to traditional assets.
U.S. stock trading volumes continued to expand for a fifth consecutive week, reaching a new local peak after stock trading services were introduced in early June across some digital asset platforms. The growth was supported by stronger market participation after the employment data release, along with the rollout of 24-hour trading and web-based functions.
The convergence between digital assets and traditional financial markets remains one of the larger structural themes in trading. Around-the-clock access, tokenized exposure and perpetual-style products are changing how some traders move between crypto, equities and commodities.
market outlook turns cautiously constructive
Aggregate data showed that Bitcoin and Ethereum moved from low-level consolidation into a moderate rebound phase. The market environment was calmer, ETF outflows had slowed and leverage was returning in a controlled way.
For Bitcoin, the $63,000 level is an important area to watch. If Bitcoin can hold above that zone, leveraged inflows could continue and support further upside. A drop back below $60,000 would likely weaken sentiment and could trigger another round of deleveraging.
Short-term volatility measures suggested a more stable trading environment heading into mid-July. That could support consolidation and gradual accumulation, especially if macroeconomic data continues to reduce fears of tighter monetary policy.
Still, the rebound is not without risks. Stablecoin supply remains weak, ETF demand has not fully recovered and some areas of decentralized finance remain uneven. The market is improving, but the recovery depends on continued liquidity support and the ability of major assets to hold key price levels.
For now, crypto markets appear to be realigning with broader financial conditions rather than contracting further. Softer U.S. data, stronger equities, slower ETF outflows and improving on-chain activity have helped restore confidence. The next test will be whether traders continue adding exposure if prices hold steady, or whether the rebound fades once the initial macro relief passes.
Want deeper insight into BTC–ETH dynamics? Explore our latest market breakdown in today’s crypto sentiment report now.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
