Bitcoin reclaimed $64,000 on Tuesday after briefly dipping to $62,800, driven by $108 million in short position liquidations. The cryptocurrency's volatile 24-hour period saw total liquidations reach $145 million across the crypto market, with short positions accounting for the majority of losses. Bitcoin's recovery maintained its July upward momentum, posting a 0.5% gain at the time of writing and lifting its market capitalization to $1.28 trillion, while the broader crypto economy's aggregate market cap reached $2.28 trillion.
Bitcoin Price Action Triggers $145 Million in Liquidations
Market data shows Bitcoin initially breached the $64,000 mark late Monday afternoon, threatening to test $64,700. Shortly after hitting a 24-hour peak of $64,657, the cryptocurrency began a downtrend that nearly erased the previous day's gains. Just after midnight, the trend reversed as Bitcoin climbed back above $63,000. It held above that threshold until 10:30 a.m., when a brief flash crash dragged it back to $62,800. The cryptocurrency then raced back to $64,140.
Exactly seven days into July, Bitcoin has risen by nearly 10%, a turnaround for an asset that recorded its second-worst June on record. Bitcoin's price action wiped out $145 million in leveraged positions over a 24-hour window, with short positions accounting for $108 million. Overall, the crypto economy saw $418 million in liquidations, with shorts accounting for almost $240 million of the total.
Bitfinex Analysts Cite $60,000 Recovery as Potential Floor
Bitfinex analysts point to Bitcoin's quick recovery after it plunged to its year-to-date low of $57,735. "BTC's quick recovery above $60,000 suggests the move below the prior $58,000 floor may have been a failed breakdown rather than a sustained leg lower," the analysts said in their latest blog post. "The rebound began before softer employment data lifted broader risk sentiment, indicating that spot demand had started to return at marginal lows."
The analysts acknowledge that a sustained recovery will likely depend on the return of stronger demand, particularly through renewed exchange-traded fund inflows.
Crypto Rover Warns Against Premature Bottom Calls
Crypto Youtuber Crypto Rover warned bulls against getting carried away by the July gains. "This bitcoin chart should terrify every bull right now," Crypto Rover warned. "The last two times, BTC printed nine red monthly candles before bottoming. 2026 has seven so far, which means the bottom isn't in yet. History is getting dangerously close to repeating itself."
FAQ
What caused Bitcoin to recover to $64,000 on Tuesday?
Bitcoin's recovery to $64,000 on Tuesday was driven by $108 million in short position liquidations out of $145 million in total liquidations across the crypto market during the volatile 24-hour period.
What do Bitfinex analysts say about Bitcoin's recent price movement?
Bitfinex analysts stated that "BTC's quick recovery above $60,000 suggests the move below the prior $58,000 floor may have been a failed breakdown rather than a sustained leg lower," indicating that spot demand had started to return at marginal lows. They note that a sustained recovery will likely depend on renewed exchange-traded fund inflows.
How much has Bitcoin gained in July so far?
Exactly seven days into July, Bitcoin has risen by nearly 10%, representing a turnaround from its second-worst June on record, with its market capitalization reaching $1.28 trillion.
