$134M in Bitcoin Longs Vaporized as BTC Breaks Below $63K Ahead of Fed Showdown
Bitcoin experienced a sharp sell-off on Tuesday, briefly dropping to an intraday low of $62,684 before partially recovering to trade around $63,600. The dip brought its monthly losses to 4% and dragged its market capitalization down to $1.277 trillion. In the derivatives market, bitcoin’s sharp drop triggered $134 million in leveraged long liquidations, a steep jump from the $30 million wiped out on Monday. Across the broader crypto market, long liquidations totalled $515 million, compared with $98 million in short liquidations.
Despite logging marginal losses, bitcoin remains on course to close July with net gains, a reversal from June. However, experts believe the last week of July could determine how it progresses through much of the second half of 2026.
Upcoming events include the Federal Open Market Committee meeting, core Personal Consumption Expenditures (PCE) price index data, and earnings reports from Wall Street giants such as Apple, Microsoft, and Amazon. Mike McCluskey, co-founder of TX and a former Fidelity executive, said Federal Reserve Chair Kevin Warsh’s press conference will provide key clues. McCluskey noted that Warsh has been consistently hawkish since taking office in May, and each press conference serves as the actual policy signal.
July 30 is critical, with second-quarter GDP, core PCE, and the Bank of England rate decision. A constructive scenario includes GDP near the 2.3% consensus and core PCE easing from May’s 3.4% year-over-year mark, giving the Fed cover to hold. If either number surprises to the upside, the hawkish read gets reinforced.
For bitcoin, a dovish Fed hold, strong AI capex guidance, and constructive PCE data could support a move to $68,000–$70,000 through August. Conversely, a hike or hawkish hold with earnings disappointments could bring the $58,000–$60,000 range back into view.