Bitcoin Reverses Gains as Liquidations Mount
Bitcoin briefly slipped below $64,000 on Friday, positioning the top cryptocurrency to end the week flat after nearly reaching $67,000 on Wednesday. The reversal occurred even as global crude oil prices, which hit two-month highs on July 23, retreated, with Brent crude dropping below $100 a barrel.
Market data shows bitcoin rose steadily, climbing from just over $64,800 Thursday afternoon to $65,705 by 3:15 a.m. EST on Friday. Immediately afterwards, however, a sell-off sent the cryptocurrency tumbling to an intraday low of $63,666, wiping out more than $2,000 in just over seven hours. A brief relief rally pulled it back above $64,000, leaving it down roughly 1% on the day.
The dip lowered bitcoin’s market capitalization from $1.3 trillion to $1.285 trillion, dragging the broader crypto market cap down to approximately $2.28 trillion.
The decline also triggered $87 million in bitcoin liquidations—$70 million in long positions and $17 million in shorts. Across the broader market, $312 million in leveraged positions were wiped out, with long bets accounting for $242 million of the total.
The sluggish price action unfolded against a bullish regulatory backdrop: Legislative momentum behind the CLARITY Act picked up significantly after the National Fraternal Order of Police dropped its opposition to the bill. In a formal letter to the Senate Banking Committee, the law enforcement organization confirmed it is now satisfied with the safeguards built into the revised proposal, removing a primary obstacle to the legislation’s progress.
The legislation also received a major push from three leading U.S. digital asset trade groups—the Blockchain Association, the Crypto Council for Innovation, and The Digital Chamber. In a joint letter urging Senate leadership to bring the CLARITY Act to the floor, the coalition emphasized that long-term statutory certainty is vital for maintaining American financial leadership.
The groups highlighted that the bill establishes the first comprehensive federal consumer protection framework, grants the CFTC explicit oversight of digital commodity spot markets, and mandates strict safeguards, including customer asset segregation, minimum capital requirements, and standardized disclosure rules.
However, many experts argue that energy inflation risks complicating the global monetary policy outlook, which in turn dampens hopes for a rate cut. Besides the short-term rate decisions, markets are increasingly paying attention to the long-term cost of capital.
“The key level now being monitored is around 5.25% on the 30-year Treasury yield. A sustained move above this level could create additional pressure on equity valuations and broader financial conditions,” Dean Chen, an analyst at Bitunix, wrote in a new market update.
Chen noted that broader liquidity conditions, energy market fluctuations, and shifting Federal Reserve interest rate expectations will remain the primary drivers of volatility across crypto and other risk assets.