Bitcoin is trading near $62,500, down approximately 2.2% to 2.4% over the past 24 hours—slightly outpacing the broader cryptocurrency market’s roughly 2% decline.
The sell-off follows escalating geopolitical tensions between the U.S. and Iran over the weekend, which drove Brent crude oil prices up more than 3%. Higher oil costs have reignited fears of persistent inflation, raising concerns that central banks may maintain elevated interest rates for longer. Such an environment typically weighs on non-yielding assets like Bitcoin, prompting traders to offload risk assets.
Leverage exacerbated the downturn. According to derivatives data, around $67.45 million in long Bitcoin positions were liquidated within 24 hours, with the majority stemming from traders who had bet on further price increases. These forced liquidations added significant selling pressure, accelerating the decline beyond initial market moves.
Technically, Bitcoin is now testing a critical support level at $61,376, derived from a Fibonacci retracement—a popular tool used by traders to identify potential reversal zones. A hold above this level could lead to consolidation in a sideways range, while a break below may open the path toward the psychological $60,000 mark.
Market participants are closely watching Tuesday’s release of the U.S. Consumer Price Index (CPI) report for July. A lower-than-expected inflation reading could alleviate pressure on risk assets and support a Bitcoin rebound, whereas a hotter print might trigger further downside.
Despite the short-term volatility and bearish sentiment, spot Bitcoin ETF flows have recently turned positive—indicating continued institutional interest even amid market turbulence.