Bitcoin Rebounds from 21-Month Bottom, Surges Past $60K as Economic Data Calms Rate Hike Concerns

Bitcoin staged a notable recovery, bouncing back from its lowest level in 21 months to reclaim the $60,000 mark. The move came after softer-than-expected macroeconomic data helped ease investor fears over further interest rate hikes by the Federal Reserve, injecting fresh optimism into the broader crypto market.

At the time of reporting, BTC was trading at approximately $59,755, reflecting a gain of around 2.14% on the day. The psychological significance of the $60K level cannot be overstated — it represents a crucial support and resistance zone that traders have been watching closely for weeks.

The rally was not limited to Bitcoin alone. Ethereum (ETH) mirrored the upward movement, climbing 2.15% to $1,607.46. Solana (SOL) posted an even stronger performance, surging 4.56% to reach $76.97, making it one of the top performers among major assets during the session.

Among altcoins, Stellar (XLM) stood out with a remarkable 8.83% gain, reaching $0.199196. WhiteBIT Token (WBT) was another significant mover, skyrocketing 17.56% to $54.63. Cardano (ADA) also saw healthy gains of 6.30%, pushing its price to $0.154554.

In the stablecoin segment, assets like USDC, USDT, and USDS remained tightly pegged to the dollar, trading within fractions of a cent from their $1.00 targets — a sign of relative stability in the broader market infrastructure.

On the decentralized finance (DeFi) side, JUP surged an impressive 13.61% to $0.235622, while MORPHO climbed 10.68% to $2.11. GRASS also gained significant ground, rising 9.46% to $0.494603. These moves suggest renewed interest in DeFi protocols as overall market sentiment improved.

Not all assets participated in the rally, however. WLD dropped 5.41% to $0.389737, while LAB suffered the steepest decline of the session, falling 34% to $8.84. TAC also posted sharp losses, shedding 27.07% to trade at $0.0462668.

Gold-backed tokens such as XAUT and PAXG both rose approximately 1.06%, trading at $4,058.86 and $4,062.99 respectively, reflecting continued demand for inflation-hedging assets even as risk appetite returned to crypto markets.

The broader market recovery appears to be driven by macroeconomic catalysts. Softer inflation or jobs data — the kind that signals to markets that the Fed may pause or slow its rate-hiking cycle — historically tends to boost risk assets, including cryptocurrencies. Bitcoin's sensitivity to monetary policy expectations has been well-documented, and this latest bounce underscores that relationship once again.

Traders and analysts will be watching closely to see whether Bitcoin can sustain momentum above $60,000 or whether this bounce represents a short-term relief rally within a longer downtrend. Key resistance levels remain above current prices, and macroeconomic uncertainty has not entirely dissipated.

For now, bulls appear to have regained short-term control, with broad market participation across large-cap and mid-cap crypto assets signaling that sentiment has shifted — at least temporarily — in a more positive direction.