Bitcoin hit the $66,400 mark: ETF inflows and short liquidations heat up the market
On July 21, the first cryptocurrency demonstrated a confident surge, reaching the $66,400 mark. This is an update of the monthly high — the last time the asset traded at similar levels was on June 17. The upward movement was accompanied by a significant inflow of capital into institutional products.
The key driver of growth was the fifth consecutive trading session with a net inflow of funds into US spot Bitcoin ETFs. Over this period, the funds accumulated approximately $727.3 million. On July 20 alone, the inflow amounted to $226.9 million — the best figure since July 6. This streak became the longest since the beginning of May, when we observed six days of continuous inflow.
The breakout of local resistance triggered a massive liquidation of short positions. Over the past 24 hours, positions worth $241.69 million were forcibly closed on the crypto market, with $182.5 million of that coming from shorts. This is a classic "short squeeze" scenario, which only adds fuel to the upward momentum.
From a technical perspective, the market's attention is now focused on the $65,000–$67,000 zone. This range formed resistance back in the first quarter. As trader Jelle noted, if buyers can confidently consolidate above it, the path to $70,000 will be open. Given the current flow of liquidity into ETFs, this scenario looks increasingly likely.
However, not everything is so clear-cut. Market veteran Peter Brandt maintains a cautious forecast, pointing to October 4 as a possible date for the end of the current bear cycle. He allows for Bitcoin to fall into the $40,000–$50,000 zone before forming a final bottom. According to him, markets do not bottom on optimism, but on panic and rising volumes, and current participant sentiment is still far from full capitulation.
My analysis: Undoubtedly, the inflow into ETFs is a powerful bullish signal, demonstrating institutional interest. However, I advise not to discount the macroeconomic backdrop and recession risks, which could once again pressure risk assets. A short-term breakout to $70,000 is possible, but for sustainable growth, the market needs to go through a phase of final "cleansing," as Brandt mentions.