Bitcoin Bulls Drive BTC Near $65,000 Despite Middle East Strikes as Shorts Collapse
Bitcoin staged a sharp intraday turnaround on July 14, climbing from under $63,000 to peak at $64,913 before stabilizing around $64,500. This 4.2% gain pushed the total crypto market capitalization past $2.3 trillion. The rally reversed earlier losses and brought Bitcoin close to the $65,000 mark despite ongoing turmoil in the Middle East.
According to Coinglass data, the surprise surge triggered $277 million in short-bet liquidations across the cryptocurrency market, with Bitcoin short liquidations accounting for $105 million. Long bets saw only $8 million in liquidations, highlighting the brutal impact on bearish traders.
The upward momentum was supported by the latest Consumer Price Index (CPI) data, which showed June inflation dropping to 3.5% year-over-year, easing immediate pressure on the Federal Reserve to keep hiking rates. This caused bond yields to ease and stabilized equity indexes.
However, the situation in the Middle East remains a concern. A third night of U.S. military strikes on Iranian targets pushed oil prices higher, with Brent crude trading near $85 a barrel. Analysts warn that renewed hostilities near the Strait of Hormuz have revived fears of a global oil shortage, undercutting hopes for a Federal Reserve rate cut. For Bitcoin, the prospect of steeper rate hikes dims expectations of reclaiming $100,000 by year-end.
Despite these headwinds, Bitcoin’s market capitalization rose above $1.29 trillion, and the aggregate crypto market cap exceeded $2.3 trillion, driven by the sudden bullish momentum.