Following the Federal Reserve’s decision to hold interest rates steady, Bitcoin briefly surged past $65,000 to a daily peak of $65,100 before facing selling pressure. It settled around $64,700, pushing its market cap to $1.3 trillion and keeping it on track for an over 10% gain in July.
Key Takeaways
Bitcoin touched $65,100 on Thursday after the Federal Reserve held interest rates steady.Volatility in Bitcoin and crypto markets triggered over $243 million in position liquidations.Ongoing U.S.-Iran tension and $90+ crude oil could prompt the Fed to raise interest rates.While the recovery to $64,000 materialized within two hours, the ascent to $65,000 proved more complex, characterized by multiple pullbacks around the $64,500 resistance level. Upon breaking through $64,500, the final push to the daily high took under four hours. Profit-taking at the peak subsequently drove prices back down; as of 2:25 p.m. EST, bitcoin was trading near $64,700, reflecting a modest daily gain of 0.5%. This movement brought total market capitalization to $1.3 trillion, positioning the asset for a monthly gain exceeding 10% for July.
Beyond monetary policy signals, digital assets like traditional markets digested broader U.S. macroeconomic data, including the 1.5% second-quarter U.S. GDP growth. While positive, the print highlights supply chain friction and economic drag stemming from geopolitical tensions in the Middle East.
However, further disinflationary progress in core PCE remains constrained by ongoing geopolitical risks, as evidenced by Iran’s surprise strikes against American targets in the last 48 hours. As demonstrated in the last round of fighting, any return to combat operations will push crude oil prices above $90 per barrel.
