Bitcoin Tops $64,360 as Bitfinex Flags Downside Risks
Bitcoin reached $64,360 after a short squeeze that wiped out about $35 million in shorts. Bitfinex warned rising real yields and a break below $63,000 could raise downside risk.
Bitcoin peaked at $64,360 on Tuesday after a rapid rally that erased roughly $35 million in overleveraged short positions. The token traded between $63,300 and $64,360 and held support above $63,500, leaving its market value near $1.29 trillion.
Trading picked up after bitcoin reclaimed $63,000 shortly after midday on Aug. 3. It climbed to an intraday high of $64,129 before reaching the session peak of $64,360 on Aug. 4. Over 24 hours the price gained 0.8%. The price briefly dipped to $63,300 on Aug. 3 and to $63,400 on Aug. 4 but otherwise stayed above $63,500 for much of the period.
Derivatives activity amplified the swings. Data from market trackers recorded $42 million in liquidations over 24 hours, with about 83% tied to short positions, roughly $35 million. Across the crypto market, short contracts worth about $122 million were liquidated compared with $58 million in long liquidations.
Political developments affected trader expectations. Senate Majority Leader John Thune expressed optimism the CLARITY Act would reach a Senate vote before recess, but with fewer than three days remaining prediction-market odds for the bill’s passage in 2026 fell to about 25%, down from roughly 27% a day earlier. Market participants said that if the bill stalls, bitcoin’s year-end prospects would depend more on macroeconomic conditions.
Bitfinex analysts highlighted macro risks in a client report, noting rising real yields and the $62,000–$65,000 range as key levels. The report referenced an intra-week reversal that closed below $63,000, with price finishing at $62,815 on Aug. 1, and warned that two daily closes below $63,000 would activate a downside trigger outlined in their previous update.
The analysts added: “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.” They pointed to strength in longer-term government bond yields and recent pressure on equities as factors increasing strain on bitcoin.
The material on GNcrypto is intended solely for informational use and must not be regarded as financial advice. We make every effort to keep the content accurate and current, but we cannot warrant its precision, completeness, or reliability. GNcrypto does not take responsibility for any mistakes, omissions, or financial losses resulting from reliance on this information. Any actions you take based on this content are done at your own risk. Always conduct independent research and seek guidance from a qualified specialist. For further details, please review our Terms, Privacy Policy and Disclaimers.
Articles by this author
