Bitcoin posted a 0.8% gain, trading between $63,300 and a session high of $64,360, while holding support above $63,500 and keeping market cap at $1.29 trillion. A sudden rally triggered a heavy short squeeze, wiping out $35 million in short positions.
Key Takeaways
Bitcoin peaked at $64,360 as time runs out for a vote on the CLARITY Act.$35 million in short positions were wiped out while Polymarket odds for the bill fell to 25%.Bitfinex analysts expect bitcoin to depend on real yields and the $62,000 to $65,000 support range.While it retreated slightly shortly afterward, bitcoin’s price action translated into another marginal gain (0.8%), leaving its market capitalization at $1.29 trillion. In the derivatives market, bitcoin’s price action in the 24-hour window was particularly brutal for traders with overleveraged short positions. Coinglass data shows that of the $42 million liquidated during the period, shorts accounted for 83% of the total, or $35 million. Overall, the crypto economy saw $122 million in short bets wiped out versus $58 million in long bets.
The analysts also assert the market remains macro dependent, pointing to a strong bond market for longer-term maturities and the current pressure on equities, which has increased strain on BTC. Still, for bitcoin, the most important factor is not economic growth. “It is the real cost of money — the return investors can earn after inflation. The current environment can help and hurt at the same time,” the analysts conclude.
