Bitcoin Tops $65,500 as $209 Million in Crypto Shorts Collapse Across Markets

Bitcoin extended its July 14 gains on Wednesday, breaking above $65,000 to reach an intraday high of $65,518. The move pushed its market capitalization past $1.3 trillion and was fueled by the release of the U.S. producer price index (PPI), which unexpectedly fell 0.3% month-over-month against expectations of flat prices. The PPI data, following Tuesday’s softer consumer price index (CPI), reduced the odds of a Federal Reserve rate hike at its upcoming meeting from over 40% to just 12%.

In the derivatives market, the price spike led to $324 million in total liquidations across cryptocurrencies, with short positions accounting for $209 million of that total. Bitcoin alone saw over $58 million in leveraged bets wiped out, nearly 85% of which were shorts.

Nansen research analyst Nicolai Sondergaard noted that spot bitcoin and ether ETF inflows on July 15 signaled a material shift in the near-term macroeconomic outlook. He pointed to the DXY trading near 100.77, its weakest level in months, and the 10-year yield easing to 4.57% after the CPI release. “For a high-beta asset, that combination removes the immediate rate headwind that has been the dominant ceiling since May,” Sondergaard said.

Despite ongoing geopolitical tensions in the Middle East, Sondergaard observed that on-chain data showed exchange outflows held up, indicating buyers are absorbing supply. He added that wallets typically moving first in such setups have not shifted meaningfully into stablecoins, and the funding rate near zero removes overleveraged long risk.

Analysts caution that the June inflation data may not fully reflect recent developments, particularly the impact of Middle East conflicts on oil prices. Brent crude and West Texas Intermediate have risen sharply. The Federal Reserve’s July 28–29 meeting is seen as a key binary event; if the Fed signals a credible pivot path, sustained ETF inflows could resume, according to Sondergaard.

Source: https://news.bitcoin.com/bitcoin-tops-65500-as-209-million-in-crypto-shorts-collapse-across-markets/