Bitcoin regains major support after plunge
On Thursday, Bitcoin It has slightly recovered from a drop of over 3% in the past 24 hours as it once again tested the $63,000 threshold. of cryptocurrencyDespite tensions remaining high in the Middle East, there were signs of recovery as U.S. and Iranian forces engaged in a gunfight for the second day in a row.
A few hours after falling below $61,500, according to daily chart data. Bitcoin It recovered and remained above $62,000 until about 9:45 p.m. ET on Wednesday. The sudden drop took prices below $61,700 at one point, but by midnight cryptocurrency In the end, a relief rally raised more than $63,000 by 3:50 a.m., causing the total to rise again to more than $62,000.
meanwhile Bitcoin It has since fluctuated between $62,500 and $63,000, but at the time of writing it was trading just above $62,700, up 1% in the past 24 hours. Marginal profit has increased Bitcoin‘s market capitalization reached nearly $1.26 trillion, helping sustain July’s strong start.
In the derivatives market, BitcoinThursday’s price trend resulted in subdued liquidations compared to 24 hours earlier. coin glass data show Bitcoin The liquidation of long and short positions amounted to nearly $52 million, compared to $65 million in long positions alone the previous day.
The sudden clash between US and Iranian forces initially shook global markets, but the recent escalation has muted the impact on stocks. Major indexes in Asia and Europe defied geopolitical headwinds to close in the green, while US markets posted modest gains at the time of writing.
Energy markets followed a similar trajectory, with Brent crude oil retreating from Wednesday’s high of just over $80 a barrel to settle below $76. But that tranquility may be fragile. Although the Trump administration has ruled out an all-out battle, observers have warned that the intensity of U.S. attacks could force Iran to retaliate by targeting oil infrastructure in the Gulf.
Macro Squeeze vs. Sovereign Hedge
On social media, market sentiment Regarding the recent escalation between the US and Iran and its impact Bitcoin are divided into two different camps. Bitcoin Structural bulls take advantage of the temporary casualties of the dollar’s strength and emphasize long-term sovereign hedging theory.
Some analysts point out that BitcoinThe initial 3% drop below $62,000 was not isolated. cryptocurrency It noted that gold was also hit by the headline news. The market narrative, they argue, is that high energy prices will trigger hawkish fears from the Federal Reserve, causing the dollar to absorb flows into safe-haven assets and temporarily squeeze risk assets, including Bitcoin.
However, many structural bulls are calling the temporary decline a bear trap, as derivatives funding rates were reset to neutral and Bitcoin was able to quickly regain the $63,000 level during the European session. They argue that the broader macro context, characterized by intensified conflict and rising global debt, will eventually strengthen the case for fixed supply assets once the initial liquidity shock has subsided.
