Key takeaways
- Bitcoin fell 1.4% below $63,600 on July 17, hitting a session low of $62,732 as post-CPI sentiment faded.
- Tensions in the Middle East and a sell-off in AI stocks led to a 1.8% drop in global technology indices and the crypto market.
- The Nansen analyst expects a brief surge before accumulation resumes, noting smart money long ratios at 1.58.
Tech sales and geopolitical tensions weigh on markets
Bitcoin downward trend for a second consecutive day while the bullish sentiment sparked by better-than-expected results in the United States inflation the data started to fade. After recovering from a brief sell-off to get closer to $64,500 on Thursday afternoon, the cryptocurrency struggled to defend the $64,000 threshold. Market data shows bitcoin fell below $64,000 shortly after 6:30 p.m. on July 17, continuing its downward trajectory until hitting a session low of $62,732 at 2:20 a.m. Friday.
After a brief consolidation above $62,750, a tentative reversal stalled at $63,300. A strong wave of selling then sent the asset tumbling to an intraday low of $62,470 around 9:45 a.m. EDT. However, it reclaimed the $63,300 level less than an hour later. At the time of writing (12:56 p.m.), bitcoin was trading slightly below $63,600, representing a 24-hour loss of 1.4%.
Marginal shrinkage has been further reduced bitcoinThe market capitalization of , from the 1.3 trillion dollars recorded on Wednesday, briefly exceeded the mark of 65,000 dollars. The slowdown also weighed on the overall crypto market capitalization down 1.8% to around $2.26 trillion.
THE bearish The tone extended to global stocks, which fell sharply. The tech-heavy Nasdaq and global technology indexes were hit the hardest, mainly due to the liquidation of artificial intelligence hardware stocks as well as the ongoing military conflict in the Middle East. Unconfirmed reports of damage to Iran’s civilian infrastructure on Friday fueled fears that the conflict had entered a more serious phase. volatile phase.
The geopolitical escalation pushed U.S. benchmark West Texas Intermediate (WTI) crude above $82 a barrel, while Brent crude topped $87.
Still, some market observers are not convinced that geopolitical frictions are the sole catalyst for the slowdown. While the recent inflation The data provided temporary relief, but analysts say macroeconomic sentiment remains weighed down by fears that a resilient economy will force the Federal Reserve to keep interest rates higher for longer – or potentially make another quarter-point hike by the end of the year. Soaring mortgage rates, which recently reached new annual highs, have added to these fears of monetary tightening.
Smart Money Stays Risk-Focused
A similar view is shared by Nicolai Sondergaard, research analyst at Nansen, who noted that bitcoin was trading at $63,000 before the Consumer Price Index (CPI) data was released, rebounded to $65,100 and only retreated to $62,837 following news of an escalation in the Middle East. Sondergaard pointed out wrapped bitcoin (WBTC) on-chain metrics to back up the thesis.
“WBTC flow data shows recorded shock: net outflows reached -18.3 BTC during the strike hour, then returned to a post-shock average of +0.67 BTC per hour, meaning buyers returned within the same session,” Sondergaard explained. “Smart money long/short ratios stand at 1.58 with zero stable coin rotation in the 24-hour window, and entries over seven days are concentrated in liquid staking, Challenge loans and DEX protocols – sector risk allocation, not defensive positioning. Retail trades at 1.79 long/short, slightly more aggressive but skewed toward smart money.
Sondergaard added that a funding rate of 0.0011 coupled with a z-score of 0.14 indicates that leveraged long positioning is not crowded enough to trigger a major liquidation cascade. Previous geopolitical escalations in the region have followed an identical pattern: a short-lived surge followed by a steady buildup.
“The inflation and liquidity channel does the structural work here,” Sondergaard concluded.
Bitcoin bulls lose grip after BTC hits $63,808 as Fed rate bets shift again
After briefly crossing $65,000 following positive data from the US producer price index, bitcoin fell back to around $64,200, dragging its market…
Bitcoin bulls lose grip after BTC hits $63,808 as Fed rate bets shift again
After briefly crossing $65,000 following positive data from the US producer price index, bitcoin fell back to around $64,200, dragging its market…
Bitcoin bulls lose grip after BTC hits $63,808 as Fed rate bets shift again
After briefly crossing $65,000 following positive data from the US producer price index, bitcoin fell back to around $64,200, dragging its market…
