Bitcoin nears $65,000 as shorts liquidate after Middle East strikes

On July 14, Bitcoin climbed to a peak of $64,913, a 4.2% gain, before settling near $64,500. The rise pushed Bitcoin’s market capitalization above $1.29 trillion and lifted the total cryptocurrency market cap past $2.3 trillion.

Bitcoin traded above $62,500 through the evening of July 13 and into the early hours of July 14. Around 8:30 a.m. EDT, the price jumped from just under $62,900 to about $64,000 within an hour, briefly consolidated above $63,500 and then surged to the intraday high of $64,913. The coin later eased to just under $64,500, leaving a 24-hour gain of roughly 4.2%.

Derivatives markets registered heavy liquidations during the spike. Data showed approximately $105 million of bitcoin short positions were closed automatically, while around $8 million of long positions were liquidated. Across the broader cryptocurrency market, liquidations totaled about $377 million, with short positions accounting for roughly $277 million of that amount.

The price move followed a third night of U.S. strikes on targets tied to Iran and a rise in oil prices. Brent crude reached about $87 a barrel earlier in the day and was trading slightly below $85 at 2:44 p.m. EDT; West Texas Intermediate was just under $80. The U.S. Consumer Price Index for June reported inflation at 3.5% year-over-year, a softer reading than some forecasts.

The June inflation reading coincided with easing bond yields and steadier equity indexes during the session. Market participants referenced the jump in oil prices and regional tensions in trading activity.

Rapid intraday price moves forced automatic closures of leveraged positions when maintenance margin requirements were breached, a mechanism that amplified losses on short positions during the morning rally.

Bitcoin has spent recent weeks trading in the low-to-mid $60,000s. No official statements were released by major exchanges in response to the liquidations.