Bitcoin closed lower after a volatile session, dropping to $62,912 before recovering slightly back above $63,000, pushing its market cap to $1.26 trillion.
Key Takeaways
Bitcoin dipped to $62,912 on Thursday as volatile trading erased late-night gains.Total crypto liquidations hit $227 million, led by $122 million in wiped-out long positions.AMINA Research warns that Strait of Hormuz risks may delay Fed rate cuts through late 2026.Following a virtually flat Wednesday close, bitcoin moved lower alongside an uptick in volatility. After spending much of Wednesday afternoon bound between $63,300 and $63,500, a brief late-night surge lifted the asset to $63,900 around 1:25 a.m. EST.
However, about two hours later, bitcoin began a descent that dragged it back below the $63,400 mark. The leading cryptocurrency repeated the pattern shortly after, rising to $63,900 before paring gains in another sell-off. Unlike the first round, however, bitcoin dipped to $62,912 at 12:44 p.m., pushing its market capitalization down to $1.26 trillion. Although it quickly reclaimed $63,000, the digital asset remained down 0.5%.
Bitcoin’s elevated volatility on Thursday spurred an uptick in liquidations. Long positions accounted for nearly $34 million of the total, up more than $13 million from the previous day. Across the broader crypto market, liquidations hit $227 million, split between $122 million in long bets and roughly $105 million in short bets.
Bitcoin’s price action diverged from U.S. equity indexes, which traded marginally higher. Stocks were buoyed by declining oil prices along with strong earnings and revenue reports from major hardware and chipmaking companies.
The report highlighted how geopolitical tensions around the Strait of Hormuz drove temporary energy spikes, adding to inflationary risks and triggering a hawkish split within the Federal Reserve, where three regional presidents dissented during the July 29 meeting in favor of a quarter-point rate hike.