Bitcoin has made a recovery, climbing past the significant $64,000 threshold
Funding rates have climbed to a 20-month high of 0.022 as of August 14, according to on-chain analytics from CryptoQuant. This suggests that most traders are currently leaning towards long positions. Meanwhile, CoinGlass data revealed that cross-crypto liquidations totaled $180 million over a 24-hour span, as prices surged towards $64,000 without causing any major liquidation events.
In the morning trading session, Bitcoin rose above the crucial resistance level of $64,000
Volatility compression is raising the stakes
Glassnode's co-founder, Rafael Schultze-Kraft, notes that the platform's volatility trap score has climbed to 91 out of 100, reaching its peak level in over three and a half years. Despite a steep drop in implied volatility to the lowest 2% of its historical range, it still sits about 1.5 times above Bitcoin's recent realized volatility. CoinGlass's liquidation heatmap highlights clusters around $64,700 on the upside and $62,200 on the downside, setting the focus for traders' next moves.
Exchange supply recovers after summer downturn
The squeeze on exchange supply seen since early summer has now reversed. According to data from Santiment, 28,000 BTC flowed back to exchanges in less than three weeks, wiping out 84% of the previous outflow. Exchange balances fell from a high of 1.337 million BTC on June 12 to 1.304 million BTC by July 28, before rebounding to 1.332 million BTC by August 16, just 5,200 coins shy of the June peak. This renewed supply suggests that retail traders are preparing for potential sales amid macroeconomic uncertainties. Santiment analysts point out that this influx is distinct from institutional buying, which generally occurs through over-the-counter desks rather than public exchange addresses. Consequently, the short-term market dynamic is tilting towards sellers.
In the morning trading session, Bitcoin saw an increase
What's happening: Bitcoin prices rose this morning, surpassing the crucial $64,000 mark.
What happened: After experiencing a downturn towards the end of last week, Bitcoin bounced back while the broader cryptocurrency market remained in a tight range.
The leading digital currency gained momentum ahead of the Federal Reserve's minutes release.
Why it matters: US spot Bitcoin ETFs experienced combined net outflows of approximately $390 million between August 10 and August 14. Similarly, spot Ethereum ETFs saw weekly net outflows of $2.26 million. This marked a significant shift from the previous week, when Bitcoin ETFs recorded inflows of $853.5 million over five trading days.
Recent US economic reports, highlighting softer inflation data, put pressure on the crypto market last week.
US inflation decreased to 3.4% in July, down 10 basis points from the prior month. However, it remains above the Fed's target rate of 2%. During the most recent Fed meeting, three governors opposed the decision to maintain current interest rates.
The latest economic data reduced speculation about potential interest rate hikes by the US central bank this year.
Investors are also closely watching developments in the US-Iran conflict. Prospects for a new deal appeared dim following President Donald Trump's statement that he is no longer interested in extending the peace agreement deadline, which technically expired on Monday.
A weaker US dollar provided support to cryptocurrencies since a lower greenback makes digital assets less expensive for foreign currency holders. The US dollar index, which evaluates the greenback’s performance against a basket of major currencies, fell about 0.1% to 99.60, nearing two-month lows.
Bitcoin increased by 1.3% to trade at $64,133.48 this morning, while Ethereum dipped 0.1%, trading at $1,898.15.
What to watch: Investors will be attentive to the Federal Reserve meeting minutes set to be released onWednesday. Additionally, a White House meeting with crypto industry leaders will be closely followed.Updates on the US-Iran situation will continue to be a focal point, as negotiations between the two nations remain stalled.
Bitcoin Today
Bitcoin represents a form of digital currency that operates without the need for a central authority, such as a bank. Transactions are verified through cryptography and recorded on a decentralized ledger known as a blockchain. Since its creation in 2009, Bitcoin has become a widely recognized and influential player in the financial sector, affecting markets, investment strategies, and discussions around the future of currency. Its value is highly volatile, driven by factors such as supply and demand, investor sentiment, and macroeconomic trends.