Bitcoin reclaimed the $64,000 mark following a brief flash crash to $62,800, bringing its total July gains to nearly 10%.
Key Takeaways
- Bitcoin reclaimed $64,000 on Tuesday, rallying past a brief flash crash to $62,800.
- Market volatility sparked $145 million in liquidations, wiping out $108 million in short positions.
- Bitfinex analysts predict future Bitcoin recovery depends tightly on stronger exchange-traded fund inflows.
Analysts Eye a Potential Floor
Bitcoin reclaimed $64,000 on Tuesday, just hours after it dipped to $62,800, maintaining its July upward momentum. Market data shows the cryptocurrency initially breached the $64,000 mark late Monday afternoon, threatening to test $64,700. Shortly after hitting a 24-hour peak of $64,657, bitcoin began a downtrend that nearly erased the previous days gains.
Just after midnight, the trend reversed as the cryptocurrency 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. Volatility was on display again as it raced back to $64,140, representing a 24-hour gain of 0.5% at the time of writing.
Exactly seven days into July, bitcoin has risen by nearly 10%, a remarkable turnaround for an asset that recorded its second-worst June on record. The marginal increase lifted its market capitalization to $1.28 trillion, helping push the crypto economys aggregate market cap to $2.28 trillion.
Bitcoins see-saw 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.
The near-double-digit gains have sparked talk that the cryptocurrency has already bottomed. This viewpoint is shared by Bitfinex analysts, who point to bitcoins quick recovery after it plunged to its year-to-date low of $57,735.
“ BTCs 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.”
Still, they acknowledge that a sustained recovery will likely depend on the return of stronger demand, particularly through renewed exchange-traded fund inflows.
However, others are pushing back, insisting that bitcoin has not bottomed yet, though it is now close. 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 isnt in yet. History is getting dangerously close to repeating itself.”
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