Bitcoin rose above $62,000 on Sunday, recovering from its lowest levels of 2026 after a brutal market selloff erased approximately $390 billion in digital asset valuations over the past week.
The leading cryptocurrency was trading at $62,843.5 at 09:04 GMT, reflecting a 3.08% increase after briefly dipping below the crucial $60,000 threshold on Friday. The rebound comes after one of the most challenging weeks for cryptocurrency markets since the FTX collapse in late 2022.
During the sell-off, Bitcoin declined by more than 17%, while Ethereum fell by roughly 20%. The total cryptocurrency market capitalisation dropped to slightly above $2 trillion, down approximately $390 billion.
The downturn was triggered by stronger-than-expected US employment data that fueled concerns about Federal Reserve interest rate policy. Fresh data showed the US economy added 172,000 jobs in May, well above expectations of 80,000, reinforcing views that the labour market remained resilient despite elevated borrowing costs.
Stronger-than-expected data pushed Treasury yields higher and strengthened the dollar, prompting investors to dial back expectations for near-term monetary easing. The yield on the 10-year Treasury surged beyond 4.5% after the Labour Department revealed the jobs figure.
Leveraged positions faced massive liquidations during the turbulence. CoinGlass data showed nearly $7 billion in leveraged positions were liquidated throughout the week, with long positions contributing about $5.7 billion to the losses. In a single 24-hour period, approximately $1.6 billion in positions were liquidated across roughly 308,000 traders.
Bitcoin accounted for $534 million of the liquidations, the largest share of any single asset, while Ether followed at $423 million. Long positions accounted for $1.21 billion of the total $1.6 billion, confirming the market had been positioned for a Bitcoin defence of the $60,000 level, which failed to hold before the price recovered.
The selloff also exacerbated losses for other cryptocurrencies. Zcash, in the middle of its own 44% collapse tied to a disclosed privacy pool bug, logged another $115 million in liquidations.
Market participants are now watching whether Bitcoin can sustain trading above $62,000, which would test technical resistance and potentially open the path higher. A rejection could see prices retest the $58,000 to $60,000 support zone.
The recovery to approximately $62,000 represents a continuation of positive price action, with Bitcoin recovering from lower levels over the past week. While the move requires confirmation through sustained trading above this level, it reflects growing bullish sentiment.
The broader crypto market faces ongoing uncertainty as traders evaluate Federal Reserve policy expectations and macroeconomic conditions. The strong employment data has reduced near-term expectations for Fed rate cuts, which typically pressure risk assets, including cryptocurrencies.
