Bitcoin Defies Odds, Finishes July Up Despite Market Shocks

Despite July's market shocks, Bitcoin managed to finish the month up nearly 8 percent. The price defied rate-hike fears, an AI-driven sell-off, and a major exchange security breach. However, traders are now waiting on cues from jobs data and a potential return of spot Bitcoin exchange-traded funds.

The OG crypto price is still down by more than 28% year to date (YTD). On the last day of July, the price dropped by almost 3%, but this was insufficient to derail the rally. Analysts attributed the lack of leveraged exposure on derivatives markets after a selloff in late June, which saw the price fall below $58,000 and trigger large liquidations of leveraged positions.

This made markets less vulnerable to further declines as the Federal Reserve began its rate-hike cycle. Average daily liquidations since early July remained well below the peak of $400 million recorded at various points through the year. 'Crypto fell less than levered equity themes because the forced-selling fuel was already spent,' analysts wrote.