Bitcoin climbed back to $63,000 on Thursday, clawing back a 3% drop that had pushed it under $61,500 as U.S. and Iranian forces exchanged fire for a second day. Traders read the fast recovery as a sign the sell-off had run its course.
Bitcoin reclaimed the $63,000 threshold on Thursday after a more than 3% tumble over the previous 24 hours dragged it under $61,500. The rebound held even as tensions in the Middle East stayed high, with U.S. and Iranian forces trading fire for the second consecutive day.
Bitcoin recovers key support after sharp drop
Daily chart data show that after slipping below $61,500, bitcoin recovered and held above $62,000 until around 9:45 p.m. Eastern time on Wednesday. A sudden sell-off briefly pulled the price just under $61,700, but by midnight it was back above $62,000, and a relief rally pushed it past $63,000 by 3:50 a.m.
The price later oscillated between $62,500 and $63,000. At the time of writing it traded just above $62,700, a gain of 1% over the last 24 hours that lifted bitcoin's market capitalization to nearly $1.26 trillion. Therefore its positive start to July stayed intact.
The recovery also calmed the derivatives market. Coinglass data show bitcoin liquidations for long and short positions nearly topped $52 million, down from $65 million in long positions alone wiped out a day earlier.
Broader markets shrugged off the escalation. Key indices in Asia and Europe closed in the green while U.S. markets posted modest gains at the time of writing. Energy followed suit, with Brent crude retreating from a Wednesday peak of just over $80 per barrel to settle below $76.
Macro squeeze versus sovereign hedge
Sentiment on social media split into two camps: macro-focused pragmatists who see bitcoin as a temporary casualty of a stronger dollar, and structural bulls using the dip to press the long-term sovereign hedge thesis. Some analysts noted that gold also took a hit on the headline news, arguing that energy price spikes stoke hawkish Federal Reserve anxiety and push the dollar to absorb safe-haven flows.
Funding rates reset to neutral and bitcoin rapidly reclaimed $63,000 during the European session. Because of this, many structural bulls called the brief drop a bear trap. They argue the wider backdrop of escalating conflict and rising global debt strengthens the case for fixed-supply assets once the liquidity shock fades.
Source: Bitcoin News
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