Bitcoin Surges to $65,000 Amid Bullish Sentiment

Bitcoin's price reached $65,000 on Tuesday, despite geopolitical tensions in the Middle East. The cryptocurrency had traded above $64,000 since Monday afternoon and held steady until just before midnight. However, a sudden surge after 9:30 a.m. EST propelled the price to its peak.

The market data show that bitcoin's price fluctuated between $64,300 and $64,000 for almost 10 hours before the surge. Although it lost momentum soon after breaching $65,000, dropping to $64,744 at 2:35 p.m. EST, the price action still resulted in a daily gain of 0.5% and pushed its weekly gains past 2%. At the time of writing, bitcoin's market capitalization was nearing $1.3 trillion.

The derivatives market saw significant liquidations, with $56 million in leveraged short positions being wiped out compared to just $4 million in liquidated long bets. Skybridge Capital founder Anthony Scaramucci noted that despite a clear bear market, the current drawdown is milder than previous cycles, suggesting many net buyers are positioning for the next bull phase.

Blockchain analytics platform Glassnode agreed with this view, highlighting that 'strong hands' are actively buying bitcoin and that market bottoms typically form as profit-taking slows and conviction buyers step in. The largest increase in bitcoin held by conviction buyers occurred when the asset dropped to $60,000 in January.