Bitcoin Defies Bad News, Surges Above $65K as ETFs Absorb Supply

Bitcoin has shown an unusual resilience to bad news, recovering above $65,000 this week after absorbing a string of negative developments. The top digital asset rose about 2% over the past 24 hours to as high as $65,212, its strongest level since late July.

The move coincided with $191.6 million in crypto liquidations across more than 80,000 traders, including a $1.66 million BTC position on Hyperliquid. Despite this, Bitcoin's sensitivity to bad news has pushed close to historical lows, according to Andre Dragosch, head of research at Bitwise Europe.

Smaller holders are still selling coins below their acquisition prices, but the intensity of that selling has fallen considerably from previous declines. CryptoQuant data shows Bitcoin's weekly average net realized profit and loss remains negative at about $368 million, far below the roughly $2 billion in net realized losses recorded during a February decline.

ETFs and larger wallets are absorbing available supply, with US spot Bitcoin ETFs pulling in hundreds of millions of dollars while large BTC holders accumulate directly on-chain. Santiment data shows wallets holding between 10 BTC and 10,000 BTC have added more than 20,000 Bitcoin since July 29.