Bitcoin Reclaims $65,000 as Crypto Market Rebounds

Cryptocurrencies have struggled to match the strength of U.S. equities, even as major stock benchmarks reached record highs and bolstered broader risk appetite. Bitcoin has repeatedly tested the $64,000 level, while Ether has swung around $1,900. The divergence suggests investors remain cautious toward digital assets, with market sentiment stuck in the fear zone and leveraged positions vulnerable to abrupt price reversals.

As of Aug. 11, Bitcoin was locked in a battle around $64,000, while Ether consolidated near $1,862. Liquidations across cryptocurrency exchanges reached $203 million over the previous 24 hours, with short positions accounting for nearly 67% of the total. Recent liquidation waves have ranged from $155 million to $390 million, underscoring persistent volatility as traders hold back despite record-setting gains in U.S. stocks.

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 and Ether are key bellwethers for the crypto market. When prices surge, leveraged short positions betting on declines can be forcibly closed because of insufficient margin, pushing prices still higher in a short squeeze. The rebound therefore reflects not only improving risk sentiment but also the danger of cascading liquidations caused by highly leveraged trading.

On July 3, Bitcoin first reclaimed $61,000 and climbed as high as about $64,700 intraday, while Ether broke above $1,700 and later topped $1,800. Crypto liquidations totaled about $458 million over 24 hours, with short positions accounting for the majority, and more than 92,000 traders were affected. Spot ETFs continued to record net outflows, while Citi cut its Bitcoin price target to $82,000, citing factors including a shift in capital toward AI.

Bitcoin’s recovery from a 21-month low lifted Ether, Solana and other assets, but the market has yet to confirm a trend reversal. US spot Bitcoin ETFs have recently continued to record large outflows, while the Crypto Fear and Greed Index has fallen to 24, in the “extreme fear” zone, signaling that risk appetite among institutions and retail investors remains weak.

Bitcoin recovered above $60,000 after touching $57,737, then briefly broke through $63,000 and climbed to around $64,000. Ether also rose above $1,800. A short-term squeeze liquidated about $160 million in short positions across the market within four hours, while related data put short liquidations at more than $170 million. SharpLink separately bought $16 million of Ether, but analysts said Bitcoin still needs to break above $70,000 to strengthen the reversal signal.

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.

Bitcoin (BTC) and Ether (ETH) are key benchmarks for the crypto market, and their price swings affect perpetual futures and leveraged positions on exchanges. When markets reverse rapidly, platforms forcibly close long and short positions with insufficient margin, making CoinGlass liquidation data a widely used gauge of market risk and investor sentiment.

As of July 19, Bitcoin had rebounded to around $78,900 over the previous 12 hours, while Ether recovered to about $2,300. CoinGlass data showed that crypto liquidations exceeded $300 million over 24 hours, with more than 83,000 traders forced out of their positions. During the recent market moves, short positions at one point accounted for 67% of liquidations, highlighting the impact of sharp rallies on highly leveraged bears.

Bitcoin and Ether are the two largest crypto assets by market capitalization, and their prices are often driven by global risk appetite, leveraged capital and geopolitical developments. Signs of easing tensions in the Middle East on July 20, 2026, sent capital flowing back into risk assets. Bitcoin's ability to hold above $76,000 is now seen as an important technical test before a potential move toward $85,000.

The latest wave of buying pushed Bitcoin above $76,000 and close to $77,000, while Ether climbed above $2,400. CoinGlass data showed that more than $637 million in crypto derivatives positions were liquidated across the market in the 24 hours through July 20, 2026, affecting more than 190,000 traders. Analysts said Bitcoin could target $85,000 if it holds firmly above $76,000.

The market had been weighed down by a February selloff and extreme pessimism after U.S. spot Bitcoin ETFs recorded $3.8 billion in net outflows over five consecutive weeks. Crowded leveraged short positions also left the market vulnerable to a short squeeze when prices rebounded. Whether ETF inflows resume has become a key indicator of risk appetite among U.S. institutional investors.

On February 25, Bitcoin rose more than 5% over 24 hours to $67,500 in early U.S. trading. ETH reclaimed $2,000, while major tokens including SOL and DOGE gained more than 10%. CoinGlass recorded more than $307 million in short liquidations. U.S. spot Bitcoin ETFs posted net inflows of $506.5 million that day, including $297.4 million for BlackRock’s IBIT.

Bitcoin and Ethereum had fallen for several consecutive days as investors grew concerned about AI stock valuations and the outlook for global risk assets. Cryptocurrencies often move with risk appetite in U.S. technology shares and Asian equities, making Bitcoin's ability to hold above $66,000 an important gauge of whether market confidence is recovering.

In the latest trading, Bitcoin surged above $66,000, while Ethereum returned to around $1,920, driving a rebound across crypto markets and Asian equities. Investors are now focused on NVIDIA's upcoming earnings and guidance for clues on whether momentum in technology stocks can continue and support the outlook for risk assets.