Bitcoin reclaims $63,000 as traders call sell-off over

Bitcoin rose above $63,000 on Thursday after falling more than 3% to under $61,500 earlier in the session. Traders declared the brief sell-off over as the cryptocurrency recovered alongside gains in equity and energy markets.

The token slipped below $61,500 during the European session, then climbed above $62,000 by about 9:45 p.m. Eastern on Wednesday. A short-lived sell-off pushed it briefly under $61,700 before buyers returned, lifting the price past $63,000 by 3:50 a.m. Thursday. At the time of reporting, bitcoin traded just above $62,700, up roughly 1% over 24 hours, with a market capitalization near $1.26 trillion.

Derivatives data showed lower liquidations on Thursday than a day earlier. Coinglass recorded about $52 million of wiped positions across longs and shorts, down from roughly $65 million in long-only liquidations reported the previous day. Funding rates in the derivatives market moved toward neutral, easing pressure on leveraged positions.

The price action occurred as U.S. and Iranian forces exchanged fire for a second day. The U.S. government indicated it was not seeking full-scale combat, while observers warned that intense strikes could prompt Iranian retaliation against Gulf oil infrastructure. Brent crude fell from a Wednesday peak above $80 per barrel to below $76 on Thursday.

Major Asian and European equity indices closed higher and U.S. markets posted modest gains during the same period. Market commentary split: some traders attributed the initial 3% drop to a temporary squeeze from a firmer dollar and safe-haven flows tied to geopolitical headlines; others called the dip a bear trap, citing the rapid recovery and neutralized derivative funding as reasons to accumulate.

Thursday’s moves maintained bitcoin’s positive start to July. Analysts noted the potential for renewed volatility if hostilities escalate or oil infrastructure is targeted, and said whether bitcoin holds above $63,000 will depend on the balance between short-term shocks and longer-term demand dynamics.