XRP Notches Best Week Since 2024 Election Pump on Bitcoin Short Squeeze

Bitcoin broke through $63,000 this morning, recovering its losses from the end of June, with XRP leading the gains among major cryptocurrencies.

According to Mars Finance, Bitcoin briefly broke through $63,000 this morning on July 5th, the first time in two weeks, rising approximately 3.6% from last week and essentially recovering the losses from the end of June. This surge occurred during the quiet trading period of the US Independence Day holiday, influenced by low liquidity. The market generally believes that low liquidity amplified short-term volatility. Among major cryptocurrencies, XRP rose 5.3% to $1.18, a weekly gain of nearly 10%, with its market capitalization rising to approximately $73 billion, surpassing USDC to become the fifth largest cryptocurrency. On-chain data shows that XRP holders' average losses are at historically extreme levels, which some traders see as a signal of a sentiment reversal. ETH rose 3.2% to approximately $1,793, a weekly gain of approximately 11.5%; Dogecoin rose 2.6%; and Solana rose approximately 13.2% for the week, continuing its overall rebound. Analysts believe this rebound was driven by comments from Federal Reserve officials regarding easing inflationary pressures, weaker-than-expected non-farm payroll data, and short covering, propelling Bitcoin from below $60,000 to above $63,000. Future market movements will depend on upcoming US inflation data and the return of institutional liquidity after the holidays.