Bitcoin spiked past $64,000 on July 14, reversing Monday losses to reach a multiweek high despite ongoing Middle East turmoil. The rally triggered $277 million in short-bet liquidations across the cryptocurrency market, according to Coinglass data. The surge followed Consumer Price Index data showing June inflation dropped to 3.5% year-over-year, lower than market fears, relieving immediate pressure on the Federal Reserve to continue rate hikes. However, renewed hostilities near the Strait of Hormuz pushed Brent crude oil above $85 per barrel, with a third night of U.S. military strikes on Iranian targets further elevating oil prices. Experts noted the conflict has ended the oil oversupply narrative and revived fears of global shortages, potentially undercutting hopes for Federal Reserve rate cuts.
Bitcoin Reaches $64,913 as Short Positions Face $277 Million Liquidation
Bitcoin struggled to breach $63,000 for much of the evening of July 13 and early hours of Tuesday, trading above $62,500. Around 8:30 a.m. EDT on July 14, the cryptocurrency spiked from just under $62,900 to reach $64,000 an hour later before consolidating above $63,500. A second rally lifted it past $64,000, with the ascent continuing until it peaked at $64,913. Bitcoin later retreated to just under $64,500, marking a 24-hour gain of 4.2%. The surge lifted its market capitalization past $1.29 trillion, pushing the aggregate crypto market cap over $2.3 trillion.
On the derivatives market, Coinglass data showed the rally triggered liquidation of $105 million in short bets, compared with $8 million in long bets. Overall liquidations across the cryptocurrency market reached approximately $377 million, with liquidated short bets accounting for $277 million of the total.
Oil Prices Climb Above $85 Amid Strait of Hormuz Tensions
A third night of strikes by the U.S. military on Iranian targets further pushed up oil prices. As of 2:44 p.m. EDT, Brent crude, which reached $87 a barrel earlier in the day, traded a few cents below $85 a barrel. The U.S. benchmark, West Texas Intermediate, was just under $80 a barrel. Oil prices have slowly climbed to levels last seen a few weeks before the U.S. and Iran announced a breakthrough in negotiations.
According to experts, renewed hostilities sparked by disagreements over the status of the Strait of Hormuz have effectively ended the oversupply narrative and revived fears of a global oil shortage. These shortages are seen as undercutting any lingering hopes for a Federal Reserve rate cut. Markets received a tailwind from the latest Consumer Price Index data, which showed June inflation dropping to 3.5% year-over-year. This lower-than-feared inflation caused bond yields to ease and stabilized equity indexes. However, with the situation in the Middle East continuing to deteriorate, the prospects of inflation dropping again in July appear dim, as oil prices remain one of the key drivers of inflation.
FAQ
What triggered Bitcoin's price spike on July 14?
Bitcoin spiked past $64,000 on July 14 following Consumer Price Index data showing June inflation dropped to 3.5% year-over-year. The rally began around 8:30 a.m. EDT, with the cryptocurrency jumping from just under $62,900 to reach $64,000 an hour later, eventually peaking at $64,913.
How much were short liquidations during Bitcoin's July 14 rally?
Coinglass data showed the rally triggered liquidation of $105 million in short bets, compared with $8 million in long bets. Overall liquidations across the cryptocurrency market reached approximately $377 million, with liquidated short bets accounting for $277 million of the total.
Why are oil prices affecting Federal Reserve rate cut prospects?
Renewed hostilities near the Strait of Hormuz pushed Brent crude above $85 per barrel as of 2:44 p.m. EDT on July 14. Experts noted the conflict has ended the oil oversupply narrative and revived fears of global shortages. Oil prices remain one of the key drivers of inflation, and rising prices are seen as undercutting hopes for Federal Reserve rate cuts.
