Bitcoin surged above $65,000 on Thursday following the Federal Reserve's decision to pause interest rate hikes, hitting a peak of $65,100 before retreating to around $64,700. This pushed its market capitalization to approximately $1.3 trillion and set the stage for a monthly increase exceeding 10% in July.
The climb to $65,000 was uneven, with the cryptocurrency dipping as low as $63,199 early in the session before steadily rallying. Traders faced several resistance points near $64,500, which Bitcoin had to overcome before reaching the day's high. Profit-taking at that level led to a slight pullback but maintained overall gains.
Volatility triggered significant position liquidations across the crypto space, surpassing $243 million within 24 hours. Long positions accounted for more than $143 million of these liquidations, while Bitcoin-specific long and short liquidations were nearly balanced around $23 million each.
Broader Market Context
Beyond the Fed's move, investors digested U.S. macroeconomic data, including a 1.5% GDP growth rate in Q2, which pointed to ongoing supply chain challenges and geopolitical tensions, particularly involving the Middle East. Such factors could influence future Federal Reserve decisions if inflationary pressures persist.
Bitcoin’s recent rise follows a pattern of recovery seen in traditional markets after central bank announcements. The recent activity contrasts with trends observed in related sectors, such as Bitcoin ETFs, which recently reversed a four-day outflow spree, signaling renewed market interest.
This content is for informational purposes only and does not constitute financial advice.
