Bitcoin failed a third time to clear $65,500 on Monday and slid to $64,336, wiping out $75 million in leveraged trades. Cooling tensions between U.S. and Iranian forces lifted the price early in the session, but weak spot bitcoin ETF inflows and infighting over the CLARITY Act capped the move. Strategy also stayed out of the market despite raising $544.5 million.
Bitcoin's third attempt to break $65,500 failed on Monday, triggering a sharper drop to $64,336 and burning traders on both sides of the book. The swings wiped out $75 million in leveraged trades, according to Coinglass data.
Three runs at $65,500, three rejections
After barely holding above $64,600 late Sunday, the cryptocurrency jumped to a session high of $65,500 as markets reacted to reports of a pause in fighting between U.S. and Iranian forces. It then pulled back to just over $65,000.
By 2:15 a.m. EDT bitcoin reclaimed $65,500, but an ensuing sell-off pushed it under $65,000 nearly six hours later. The third attempt at the same level failed, and the retreat to $64,336 followed.
Price action was generally flat even after the cryptocurrency reversed some losses, leaving its market capitalization at approximately $1.3 trillion. With a few days remaining in July, that marginal rise left bitcoin closer to finishing the month with positive gains after starting it trading under $59,000.
Shorts and longs both paid
The whipsaw move burned traders on both sides who carried too much leverage. Coinglass data shows nearly $45 million in short bets were liquidated over a 24-hour window.
Longs fared no better over the same period. Roughly $30 million in leveraged long positions were wiped out.
ETF flows and the CLARITY Act cap the rally
The sudden cooling of geopolitical tensions triggered a sharp retreat in crude oil, providing immediate tailwinds for risk assets including crypto. But that upward trajectory quickly stalled: weak inflows into spot bitcoin ETFs, coupled with persistent political infighting over the final text of the CLARITY Act, reignited regulatory headwinds.
Advocacy groups have pushed back on the criticism aimed at the bill. The Crypto Council for Innovation argues the legislation expands AML/CFT rules, sets decentralized finance cybersecurity standards with NIST, and provides FinCEN with $150 million for implementation.
Strategy added to the drag. The company opted not to expand its bitcoin balance sheet despite pulling in $544.5 million from a fresh MSTR share sale, removing a key buying catalyst. That left bitcoin unable to anchor above the resistance level it had tested three times.
Source: Bitcoin News
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