Bitcoin Traders Pull BTC Below $63K as Middle East Tensions Trigger Fresh Risk-Off Selling
Bitcoin fell for a second straight day, dropping 1. 4% to trade just under $63,600. It hit a session low of $62,732 early Friday, trimming its market cap and dragging the aggregate crypto market capitalization. . .
Bitcoin fell for a second straight day, dropping 1. 4% to trade just under $63,600. It hit a session low of $62,732 early Friday, trimming its market cap and dragging the aggregate crypto market capitalization down 1. 8% to $2. 26 trillion. Key TakeawaysBitcoin fell 1. 4% below $63,600 on July 17, hitting a session low of $62,732 as post-CPI sentiment faded. Middle East tensions and an AI stock sell-off dragged global tech indices and the crypto market down 1. 8%. Nansen’s analyst expects a brief flush before accumulation resumes, noting smart money long ratios at 1. 58. Tech Sell-Off and Geopolitical Tensions Weigh on MarketsBitcointrended lower for a second consecutive day as thebullishsentiment sparked by better-than-expected U. S. inflationdata began to fade. After recovering from a brief sell-off to edge toward $64,500 Thursday afternoon, thecryptocurrencystruggled to defend the $64,000 threshold. Market data showbitcoinslipped below $64,000 shortly after 6:30 p. m. July 17, continuing its downward trajectory until hitting a session low of $62,732 at 2:20 a. m. Friday. Following a brief consolidation above $62,750, a tentative reversal stalled at $63,300. A sharp wave of selling then sent the asset tumbling to an intraday low of $62,470 around 9:45 a. m. EDT. However, it reclaimed the $63,300 level less than an hour later. At the time of writing (12:56 p. m. ),bitcoinwas trading slightly under $63,600, representing a 24-hour loss of 1. 4%. The marginal pullback further trimmedbitcoin’s market capitalization from the $1. 3 trillion recorded Wednesday, when it brieflysurpassedthe $65,000 mark. The downturn also dragged the aggregatecryptomarket capitalization 1. 8% lower to approximately $2. 26 trillion. Thebearishtone extended to global equities, which pulled back sharply. The tech-heavy Nasdaq and global technology indices bore the brunt of the damage, driven primarily by a sell-off of artificial intelligence hardware stocks as well as the ongoing military conflict in the Middle East. Unconfirmed reports of damage to Iranian civilian infrastructure on Friday fueled concerns that the conflict has entered a morevolatilephase. The geopolitical escalation pushed the U. S. crude benchmark, West Texas Intermediate (WTI), above $82 per barrel, while Brent crude surged past $87. Still, some market observers remain unconvinced that geopolitical friction is the sole catalyst for the downturn. While the recentinflationdata brought temporary relief, analysts assert that macro sentiment remains weighed down by fears that a resilient economy will force theFederal Reserveto keep interest rates higher for longer — or potentially execute another quarter-point hike by year-end. Surging mortgage rates, which recently hit fresh annual highs, have compounded these monetary tightening fears. Smart Money Remains ‘Risk-On’A similar view is shared by Nicolai Sondergaard, a research analyst at Nansen, who noted thatbitcointraded at $63,000 pre-consumer price index (CPI) data release, rallied to $65,100, and only retreated to $62,837 following news of escalation in the Middle East. Sondergaard pointed to wrappedbitcoin(WBTC) on-chain metrics to back up the thesis. “The WBTC flow data shows the shock registered: net outflows hit -18. 3BTCin the strike hour, then reverted to a post-shock average of +0. 67BTCper hour, meaning buyers returned within the same session,” Sondergaard explained. “Smart money long/short ratios are running at 1. 58 with zerostablecoinrotation in the 24-hour window, and seven-day inflows are concentrated inliquid staking,DeFilending, andDEXprotocols — risk-on sector allocation, not defensive positioning. Retail sits at 1. 79 long/short, slightly more aggressive but directionally aligned with smart money. ”Sondergaard added that a funding rate of 0. 0011 alongside a z-score of 0. 14 indicates that leveraged long positioning is not crowded enough to trigger a majorliquidationcascade. Previous geopolitical escalations in the region have followed an identical pattern: a short-duration flush followed by steady accumulation. “Theinflationandliquiditychannel is doing the structural work here,” Sondergaard concluded. After briefly crossing $65,000 following positive U. S. producer price index data, bitcoin fell back to around $64,200, dragging its market…Bitcoin Bulls Lose Grip After BTC Hits $63,808 as Fed Rate Bets Shift AgainAfter briefly crossing $65,000 following positive U. S. producer price index data, bitcoin fell back to around $64,200, dragging its market…After briefly crossing $65,000 following positive U. S. producer price index data, bitcoin fell back to around $64,200, dragging its market…