Daytime rally
In a surprising turnaround, Bitcoin Despite the continued turmoil in the Middle East, it recovered Monday’s losses and moved closer to breaking above $65,000. However, as the daily chart shows, it wasn’t until after 8 a.m. cryptocurrency It began to soar, eventually hitting a multi-week high.
Prior to that, the stock had been trading above $62,500 for much of the night of July 13 and early Tuesday, and had struggled to break through the $63,000 milestone. However, around 8:30 a.m. Eastern Daylight Time, Bitcoin It skyrocketed from just under $62,900 to $64,000 an hour later, before stabilizing above $63,500. The price rose above the $64,000 level for the second time, and the rally continued to a peak of $64,913.
Bitcoin The stock then rose 4.2% in 24 hours to fall to just under $64,500. Unexpected spike pushes market capitalization above $1.29 trillion cryptocurrency Market capitalization That’s over $2.3 trillion.
In the derivatives market, Bitcoin24-hour price action has been brutal for short traders. Coinglass data showed the rally was triggered liquidation The short bet was $105 million compared to $8 million for the long bet. Overall, the liquidation cryptocurrency The market totaled approximately $377 million, with liquidated short bets accounting for $277 million of the total.
Oil prices rose further after three consecutive nights of attacks by the US military targeting Iran, but the market received a tailwind from the latest Consumer Price Index (CPI) data released in June. inflation The year-on-year comparison decreased to 3.5%. This lower-than-expected inflation eases immediate pressure on the Federal Reserve to keep interest rates high, lowering bond yields and stabilizing stock indexes.
However, as the situation in the Middle East continues to deteriorate, the prospects for inflation to fall again in July look bleak. Already, oil prices, one of the main drivers of May’s inflation spike, have slowly risen to levels seen weeks before the US and Iran announced a breakthrough in negotiations. As of 2:44 p.m. EDT, Brent crude oil, which hit $87 a barrel earlier in the day, was trading a few cents below $85 a barrel, while U.S. benchmark West Texas Intermediate was just under $80 a barrel.
Experts say the new hostilities sparked by disagreements over the status of the Strait of Hormuz have effectively ended the oversupply saga and reignited fears of a global oil shortage. The shortfall is expected to undermine persistent expectations that the U.S. Federal Reserve will cut interest rates. In the case of Bitcoin, the prospect of further interest rate hikes dashes any hopes of regaining $100,000 by the end of the year.
