BTC Hits $64,360, but Bitfinex Warns of Downside Risks

Bitcoin posted a 0.8% gain on Tuesday, trading between $63,300 and a session high of $64,360 while holding support above $63,500. The rally triggered a heavy short squeeze, wiping out $35 million in short positions out of a total $42 million liquidated in the 24-hour window. Overall, the crypto economy saw $122 million in short bets wiped out versus $58 million in long bets.

The price action comes as the U.S. Senate could vote on the CLARITY Act this week. Senate Majority Leader John Thune remains optimistic the bill will reach a vote before recess, but with under three days remaining, prediction market traders are skeptical. On Polymarket, the odds of the bill passing in 2026 fell to 25% by Tuesday afternoon, down from 27% on Monday.

Bitfinex analysts warned that if the legislation stalls, bitcoin’s year-end rally will depend on broader macroeconomic conditions rather than crypto-native catalysts. They noted that rising real yields and bitcoin’s ability to hold the $62,000–$65,000 support range will dictate its next direction. “The transition into August comes with immediate pressure: a reversal from an intra-week peak of $65,420 led to a close below $63,000, followed by price closing at $62,815 on Saturday, August 1, 2026. Two daily closes below $63,000 officially activates the downside trigger,” the analysts wrote.

They also emphasized that the market remains macro dependent, pointing to a strong bond market and pressure on equities. The most important factor for bitcoin is the real cost of money — the return investors can earn after inflation. “The current environment can help and hurt at the same time,” the analysts concluded.

Bitcoin’s market capitalization stood at $1.29 trillion after the marginal gain.

Source: https://news.bitcoin.com/market-updates/btc-hits-64360-but-bitfinex-warns-of-downside-risks/