Bitcoin Bounces to $63,500 on Early July Rally as Over 50% of Supply Sits Underwater

According to The Block, Bitcoin bounced to $63,500 on early July after a six-session rally driven by easing macro conditions, Federal Reserve dovish signals, and Middle East de-escalation. The gains marked a rebound from June's brutal month, where BTC declined 20.5%. Bitcoin gained 6.75% on the week while Ether jumped 13.5%, outpacing the S&P 500's 2.2% rise.

Spot bitcoin ETF inflows totaled $266 million on July 6, led by $209 million into BlackRock's IBIT, suggesting institutional demand may be returning. However, more than 50% of Bitcoin's circulating supply still trades at a loss—a threshold that historically preceded one-year returns of 359%, 69%, and 93% in prior cycles since 2011, according to K33 research. This metric often marks structural bottom opportunities.