[Digital Today reporter Jinju Hong (홍진주)] Bitcoin regained the $63,000 level during the U.S. Independence Day holiday period, prompting a rebound in the cryptocurrency market. Investor sentiment improved as spot exchange-traded fund (ETF) outflows that had continued throughout June turned into net inflows. Altcoins posted larger gains than bitcoin.

On July 6 (local time), blockchain outlet Decrypt reported that bitcoin has risen about 5 percent over the past week to above $63,000. Over the same period, ethereum gained 12 percent to $1,770 and solana rose 11 percent to $81. Hype rose 12 percent and zcash gained 16 percent. The CMC20 index, which tracks the top 20 cryptocurrencies by market value, also rose about 9 percent.

Among altcoins, LIT posted the most notable rise. LIT surged 44 percent over the week after linking with Robinhood, hitting a record high of $2.50. As risk appetite returned across the market, memecoins and some Solana-based tokens also showed strength.

ANSEM jumped 300 percent over the week, expanding to $350 million on a fully diluted valuation (FDV) basis and newly entering the top 100 tokens by market value.

U.S. employment data and changes in ETF fund flows are cited as drivers of the market rebound. U.S. nonfarm payrolls in June rose by 57,000, far below the market forecast of about 113,000. An analysis says concerns about further rate hikes eased, improving risk-asset sentiment.

Spot bitcoin ETFs also shifted the mood on July 2, posting net inflows of $223.5 million. It was the first meaningful net inflow since more than $4 billion flowed out over June. Spot ethereum ETFs also recorded net inflows for a second straight day, with about $15 million on July 1 and $29 million on July 2.

The outlet said the return of ETF flows to the green was a signal bulls had been waiting for and that selling pressure from institutional investors was gradually easing. Bitcoin fell to as low as $57,950 early this month, the lowest in about 21 months, but large investors were tallied as having added about $16.7 billion worth of bitcoin over the same period.

Bitcoin-related stocks also rebounded strongly. STRC, a Strategy ecosystem stock, rose 21 percent over the week to close at $87.87, and MSTR also gained 21 percent over the same period, recovering the $100 level.

The market is also showing caution that it is still too early to conclude a trend reversal. Bitcoin ETFs posted net inflows on a daily basis but still show weekly net outflows of $527 million. Ethereum ETFs also recorded weekly net outflows of about $13 million. The outlet said it is hard to say that one or two days of net inflows have reversed a record month of outflows and stressed the need to see whether additional inflows continue.

The market is also watching that altcoins rose more strongly than bitcoin. The outlet said a pattern in which altcoins outpace bitcoin is a typical signal of risk-asset preference. It added that the next point to watch is whether the pattern continues after the holiday period ends and U.S. market liquidity fully returns.

Volatility in individual projects also continued. Summer Finance suffered losses of about $6 million from an exploit attack over the weekend, and VVV fell about 20 percent after an equity-related announcement. In the NFT market, the floor price of CryptoPunks rose about 4 percent to 32.4 ETH, and investor Daniel Sundheim put about $2.2 million over the past week into buying 22 CryptoPunks.

Ethereum development is also accelerating. Vitalik Buterin unveiled a 'Lean Ethereum' roadmap and proposed introducing a recursive STARK-based verification system and quantum-resistant cryptography over the next 3 to 4 years. He also disclosed a goal of building a scalable state structure by 2030 to cut some transaction costs by more than 10 times.

The market is paying attention to whether ETF inflows continue, along with technical development and investment flows in individual projects, as key variables that will determine the direction of the cryptocurrency market.