Bitcoin Holds Near $64,500 as Market Fear Persists

Bitcoin’s latest pullback extended losses triggered by the U.S. Federal Reserve’s hawkish policy stance. The Fed’s abandonment of forward guidance deepened concerns that high interest rates would persist. A simultaneous selloff in technology stocks and continued net outflows from spot cryptocurrency ETFs also weighed on risk assets, while a market sentiment gauge fell into extreme-fear territory.

In the early hours of July 20, Bitcoin briefly fell below $59,100 and traded as low as around $59,297 intraday. Cryptocurrency liquidations totaled $988 million over the previous 24 hours, with long positions accounting for about 80%, indicating concentrated liquidations among leveraged bulls. The Crypto Fear and Greed Index also dropped to 12.

The Crypto Fear and Greed Index combines measures including volatility, trading volume and market momentum to gauge risk appetite in the crypto market. Lower readings indicate stronger risk-off sentiment. Geopolitical tensions and uncertainty over the interest-rate outlook have made investors more cautious, making Bitcoin’s ability to hold above $60,000 a key test of whether the decline will deepen.

As of this report, the Crypto Fear and Greed Index had remained in the “extreme fear” zone for 12 consecutive days, with its latest reading holding at 11. Despite weak market sentiment, Bitcoin continued to consolidate above the $60,000 support level, while selling pressure had not increased significantly. Some analysts therefore view the price action as a positive sign that Bitcoin may be stabilizing.