Bitcoin Reclaims $64,000 as Funding Rate Hits 20-Month High

Bitcoin and Ether are the crypto market’s main gauges of risk appetite, with sharp moves often spilling into altcoins and leveraged derivatives. The latest recovery comes as record-high U.S. equities and easing anxiety over the Federal Reserve encourage investors to take on more risk. Still, sentiment remains fragile after recent volatility and heavy liquidations unsettled traders across digital-asset markets.

Bitcoin reclaimed the $65,000 level in the latest broad-based advance, while Ether jumped more than 3% to break above $1,940. Crypto derivatives positions worth about $213 million were liquidated across the market over the past 24 hours. The Fear and Greed Index rose to 30, signaling an improvement from deeper pessimism, though the reading remained in “fear” territory and pointed to continued caution among investors.

As the leading cryptocurrency, Bitcoin’s price swings have long served as a barometer for global crypto and fintech markets. The cryptocurrency recently came under sharp downward pressure as geopolitical tensions escalated and the US Federal Reserve signaled a hawkish monetary policy stance. Renewed inflows into spot exchange-traded funds have since provided strong support for the crypto market, leaving Bitcoin’s outlook closely linked to macroeconomic indicators and institutional fund flows.

Bitcoin rebounded sharply on July 16, 2026, after a steep selloff, powering back above $63,500. The short squeeze liquidated more than 57,000 traders across the crypto market over the previous 24 hours, with total liquidations exceeding $160 million. Short positions accounted for nearly 60% of the total. Despite the near-term recovery, the market remains under pressure from the Federal Reserve’s hawkish stance and geopolitical tensions.

Bitcoin had weakened amid geopolitical risks, uncertainty over interest rates and capital outflows, but recently rebounded as expectations of U.S.-Iran peace talks grew, funds returned to spot Bitcoin ETFs and technical indicators showed oversold conditions. High leverage in crypto derivatives means sharp price gains can trigger cascading short liquidations and amplify market volatility.

After recovering from its low, Bitcoin first returned to nearly $66,000 as marketwide liquidations reached $325 million over 24 hours, with shorts accounting for about 70%. The price later climbed as high as $67,300, pushing liquidations to $489 million and affecting 107,000 traders, while Ether gained 4.6%. The market’s next focus is the U.S. Federal Reserve’s FOMC interest-rate decision.

Bitcoin previously plunged after being hit by U.S. nonfarm payrolls data, triggering cascading liquidations of leveraged positions. The subsequent rebound also lifted Ether and other crypto assets, but investor sentiment remained in extreme-fear territory as outflows from U.S. spot Bitcoin ETFs continued and markets awaited the U.S. Consumer Price Index (CPI).

The latest wave of buying pushed Bitcoin back to about $64,000, briefly touching $64,200. Based on differing data sets, roughly 97,000–105,000 traders were liquidated over 24 hours, with total liquidations ranging from $270 million to $675 million. Short positions accounted for more than $540 million in losses, representing over 80% of the total.

Institutional capital has become a major driver of Bitcoin prices since the U.S. Securities and Exchange Commission approved spot Bitcoin ETFs in January 2024. An easing of U.S. policy uncertainty, along with gains in U.S. stocks and strong corporate earnings, lifted risk appetite and helped Bitcoin reclaim the $68,000 level.

Bitcoin surged from $62,400 to $68,600 over the past 24 hours, gaining about 9.9% and reaching a weekly high. U.S. spot Bitcoin ETFs ended five consecutive weeks of net outflows and recorded one of their largest inflow days of the quarter in the latest session, bolstering buying demand. Analysts cautioned, however, that the risk of market volatility had not fully receded.