Bitcoin’s price kept wavering on Monday, unable to push past the $65,500 resistance despite easing tensions in the Middle East. The cryptocurrency hit this level multiple times but retreated sharply each time, leaving traders exposed to losses on both sides.
After hovering just above $64,600 late Sunday, Bitcoin surged to $65,500 following news about a temporary halt in US-Iran military actions. The price briefly held close to that mark, then dropped just above $65,000. Early Monday proved volatile: Bitcoin reclaimed $65,500 by 2:15 a.m. EDT, only to fall under $65,000 around six hours later. A third attempt to cross $65,500 failed, provoking a swift slide to $64,336.
This back-and-forth resulted in $75 million wiped from overleveraged positions according to Coinglass data, with approximately $45 million in shorts and $30 million in longs liquidated over 24 hours. Despite these swings, Bitcoin’s market cap stabilized near $1.3 trillion. After starting July below $59,000, the coin’s slight gains position it for a modest positive close to the month.
Geopolitics and Regulatory Headwinds Stall Momentum
The recent easing of US-Iran tensions briefly lifted risk appetite, pulling crude oil prices down and momentarily boosting crypto markets. However, Bitcoin’s climb stalled partly because of weak flows into spot Bitcoin ETFs and ongoing political deadlock over the CLARITY Act’s final wording, which slowed positive momentum.
Advocates like the Crypto Council for Innovation highlight that the CLARITY Act represents a major step in digital asset regulation, expanding anti-money laundering rules and setting cybersecurity standards with NIST. The bill also allocates $150 million to FinCEN for enforcement.
Still, regulatory uncertainty held back some institutional players. Strategy, a firm that recently raised $544.5 million, chose not to increase its Bitcoin holdings, dampening bullish momentum.
