ETH Outpaces BTC with 5.67% Surge as $460M Shorts Get Liquidated

Crypto markets woke up to a textbook macro catalyst on July 3 as a U.S. jobs miss of just 57,000 new payrolls sent rate-cut expectations soaring—and bears running for cover. Ethereum stole the show with a 5.67% leap to $1,708, far outpacing Bitcoin’s 2.19% gain, while the total short squeeze liquidated $460 million in bearish bets. The move pushed Bitcoin back above $62,000 intraday, stirred altcoins from XRP to Dogecoin, and even pumped niche tokens like Magma Finance by 37%. But beneath the surface, the Binance long/short ratio dipped as traders pocketed profits, raising the question: was this the start of a sustained uptrend or a one-hit wonder driven by a forced unwind?

A sharp rally swept through cryptocurrency markets on Thursday, July 3, 2026, as softer-than-expected U.S. jobs data for June ignited expectations that the Federal Reserve may hold off on further rate hikes—or even consider cuts—triggering a broad risk-on move. Bitcoin (BTC) gained 2.19% to trade near $61,460, after briefly breaching $62,000, while Ethereum (ETH) surged 5.67% to $1,708, and altcoins like XRP and Dogecoin followed suit. The move came alongside record highs in the Dow Jones Industrial Average, which rose 1.14% to close at 52,900.07, underscoring a potent macro-driven rally.

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Bitcoin (BTC) gained 2.19% to trade near $61,460, after briefly breaching $62,000, while Ethereum (ETH) surged 5.67% to $1,708, and altcoins like XRP and Dogecoin followed suit.

The catalyst was a deeply disappointing June nonfarm payrolls report. While the official number was cut off in reporting, context indicates just 57,000 jobs were added—far below consensus estimates and a steep drop from previous months—signaling a rapid cooling in the labor market. This doused fears of an overheating economy and sharply reduced the probability of a near-term rate hike, fueling a rotation into risk assets. The crypto market, long-sensitive to liquidity expectations, responded forcefully, with nearly $460 million in short liquidations over 24 hours as bearish bets were squeezed. Bitcoin’s open interest rose to $46.22 billion, reflecting fresh capital entering the market, though derivatives traders on Binance trimmed net long positions, hinting at some caution after the spike.

The rally wasn’t uniform: Ethereum’s 5.67% jump outpaced Bitcoin’s, a sign of renewed risk appetite for higher-beta altcoins. Solana added 4.20%, XRP rose 3.23%, and Dogecoin edged up 3.17%. Crypto-related equities also rode the wave—Strategy Inc. (MSTR) jumped 7.90%, while Bitmine Immersion Technologies (BMNR) gained 1.48%. The total crypto market capitalization remained at $2.2 trillion, down slightly over the day, suggesting that while spot prices climbed, some earlier over-exuberance may have cooled.

Analyst commentary captured the shift in mood: “Markets are just waking up,” signaling that this could be the start of a new leg for both equities and crypto, should the jobs weakness persist and the Fed pivot. Historically, weak labor data that pushes rate-hike expectations lower has been a powerful tailwind for crypto, as seen in the bull runs of 2023 and parts of 2025. However, the reaction in the S&P 500 and Nasdaq—the latter actually dropping 0.8%—reveals a more nuanced picture: some profit-taking in high-multiple tech stocks while value and cyclical plays gained. This divergence hints that the crypto surge may be partly a sector rotation rather than a blanket risk-on trade.