A week after the panic sell-off, Bitcoin reclaimed the $60,000 mark, while Ethereum returned to $2,600.

After experiencing a panic sell-off last Monday, the stock market investors are gradually calming down. The three major U.S. stock indexes closed narrowly higher on Friday, August 9th, almost recovering from the previous sharp declines. Bitcoin once again crossed the $60,000 mark, while Ether returned to around $2,600.

Investor Panic Eases

Data released by the U.S. Department of Labor showed that for the week ending August 3, seasonally adjusted initial jobless claims fell to 233,000, indicating that previous employment data was impacted by severe weather, and concerns about a collapse in the labor market were exaggerated.

According to CME FedWatch, the probability of a one or two basis point rate cut in September is now evenly split, a significant improvement from the market panic that previously predicted a 70% chance of a two-point cut, with expectations for rate cuts by the end of the year dropping from five to four basis points. Previously, there were concerns that the Fed would need to cut rates quickly to rescue the economy from a downturn. The three major U.S. stock indexes closed narrowly higher on Friday, August 9, almost recovering from the previous steep decline.

Investors are awaiting the key Consumer Price Index (CPI) data to be released next Wednesday. There is a growing belief that U.S. inflation is slowing, which will give the Fed enough confidence to begin cutting rates in September.

BTC Returns to $60,000 Mark, ETF Net Outflow of $89.73 Million

After briefly dropping below the $50,000 mark last week, Bitcoin ultimately returned above the neckline and back to the $60,000 level.

According to previous reports, analysts at JPMorgan estimated that the average production cost of Bitcoin is around $49,000. Once the price falls below this level, it will put pressure on miners and further affect the price of Bitcoin. Fortunately, Bitcoin has now successfully moved away from this price level. Analysts believe that Bitcoin futures have a higher premium compared to spot prices, indicating that futures investors are confident. In addition, the cash claims provided by FTX to creditors may further boost demand in the crypto market. However, caution is still advised for the future.

JPMorgan: Caution Advised for the Future, Crypto Market Has No Catalyst for Upside

According to data from SoSoValue, Bitcoin spot ETFs saw a net outflow of $89.73 million yesterday, with Grayscale GBTC seeing an outflow of $77 million, Fidelity's FBTC outflowing $19.85 million, and Bitwise's BITB outflowing $18.14 million.

ETH Returns to $2,600, ETF Net Outflow of $15.71 Million

Ethereum has been weaker in response to the impact of Jump Trading's liquidation, with a cumulative weekly decline of 12%, and has not yet reached the neckline around $2,800.

According to SoSoValue data, Ethereum spot ETFs saw a net outflow of $15.71 million yesterday, with inflows from other funds unable to offset the net outflow of $41.68 million from Grayscale ETHE.