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Bitcoin fell 2.42% over 24 hours to $62,461.35 as renewed US-Iran military strikes pushed investors away from risk assets. The move tracked weakness across equity markets, while Bitcoin’s 75% correlation with gold showed that macro forces shaped trading activity.
The broader crypto market also lost 1.12%, cutting its total value to about $2.15 trillion. Meanwhile, the Fear and Greed Index dropped to 28, while Bitcoin dominance stayed near 60%. Traders now face lower liquidity, rising geopolitical risk, and the US CPI report due July 14.
Renewed US airstrikes on Iran increased concern over Middle East supply routes and the Strait of Hormuz. Brent crude gained more than 3%, adding fresh inflation concerns. Bitcoin moved lower with other risk assets as traders reduced exposure before new economic data.
The drop pushed Bitcoin below the cited $62,565 support level. This break raised the risk of a move toward $60,000, which serves as a major psychological price zone. A recovery above $64,300 would ease some short-term pressure, but geopolitical news may keep price swings elevated.
Leverage added force to the decline. Bitcoin liquidations reached $70.23 million over 24 hours, up 248% from the previous period. Long positions accounted for 85% of the total, showing that forced selling came mainly from traders positioned for higher prices.
Across the crypto market, liquidations reached $254.4 million and affected 68,505 traders. Long liquidations totaled $194.9 million, while short liquidations reached $59.5 million. Ethereum traded near $1,789, while BNB and XRP also posted losses. Solana held near $76.80 and moved against the broader trend. The Altcoin Season indicator stood at 59 out of 100, showing that altcoins had not broadly overtaken Bitcoin.
Furthermore, the average crypto RSI hovered near 45, pointing to weak momentum without an oversold reading. These figures showed a cautious market rather than a full capitulation event.
Stablecoin market value has fallen by about $10 billion from its May peak despite high transaction volume. June alone recorded a $7.7 billion decline, the largest monthly contraction since the Terra-Luna collapse in May 2022. USDT lost about $6 billion, while USDC declined by approximately $7 billion over the period.
Stablecoins provide trading liquidity and often indicate whether capital remains in crypto. The latest decline suggests that part of the market moved back into fiat rather than waiting in digital dollars. Analysts have called the move a ‘temporary correction,’ but two straight months of falling supply point to weaker available capital.
Bitcoin fell 3.6% in May and 20.45% in June as stablecoin liquidity contracted. Stablecoin dominance now sits near 6.5%, while Bitcoin dominance holds close to 60%. A further drop in stablecoin use could delay any ‘market bottom’ and keep pressure on higher-risk tokens.
The July 14 CPI report now stands as the next major trigger. Softer inflation could support rate-cut expectations and improve risk appetite. A stronger reading may lift yields and add pressure on Bitcoin. Traders will also watch whether Bitcoin can regain $63,000 or drop toward $60,000.
Also Read: DeFi Outperforms Bitcoin: DeFi Tokens Drop Just 4% as BTC Plummets 22%
