Bitcoin slips near $62,000 as Fed caution hits futures positioning

Bitcoin moved back toward the $62,000 area on Wednesday as traders cut exposure before the Federal Reserve’s June meeting minutes, Cointelegraph reported. For everyday investors, the move shows how quickly a crypto rally can lose momentum when leveraged futures bets are doing much of the work.

Cointelegraph said Bitcoin was trading slightly above $62,000 and was down nearly 2% over 24 hours. The pressure was not limited to crypto: global markets were also dealing with weakness in semiconductor and AI stocks, renewed profit-taking tied to Samsung, and a roughly 5% jump in oil after military escalation between the U.S. and Iran.

U.S. stocks opened lower, according to Cointelegraph, while traders waited for the Fed minutes. Those minutes matter because they can give clues about interest rates. Higher rates can make cash and bonds more attractive relative to riskier assets, while expectations for lower rates often support risk appetite.

Cointelegraph reported that markets were pricing about a 73% chance the Fed keeps rates unchanged at its next meeting on July 29. The main focus for investors was how the minutes described inflation and the path for rates.

Futures traders turned from buyers to sellers

Hyblock data cited by Cointelegraph showed a clear shift in Bitcoin order flow. Cumulative volume delta, or CVD, tracks whether buyers or sellers are more aggressive in a market by comparing buying volume with selling volume.

On Monday, Bitcoin’s futures CVD rose by about $585 million, while spot CVD added nearly $119 million. Combined, that pointed to roughly $705 million in net buying as Bitcoin climbed above $64,000, according to Cointelegraph.

By Wednesday, that buying had flipped. Cointelegraph reported nearly $500 million in futures selling and $86 million in spot selling as traders reacted to oil’s rise, the semiconductor selloff and the Fed minutes.

Funding rates and open interest also fell, according to Hyblock data cited by Cointelegraph. A funding rate is a regular payment between traders in perpetual futures contracts, often used to show whether longs or shorts are paying to maintain positions. Open interest measures the total value of active derivatives contracts. A decline can show traders are closing bets rather than adding risk.

Even with that reduction, Cointelegraph said the weeklong trend of positive funding rates remained in place.

Liquidations leaned heavily against longs

Liquidations were relatively limited in dollar terms, but they were mostly concentrated on bullish trades. Cointelegraph reported about $47 million in long liquidations on Wednesday, compared with roughly $4 million in short liquidations.

A liquidation happens when an exchange forcibly closes a leveraged position because the trader no longer has enough collateral to support it. Hyblock data cited by Cointelegraph showed a large group of long positions near $61,000. If Bitcoin falls into that area, forced selling could briefly add pressure.

Cointelegraph said a confirmed trend reversal was not yet in place. The report noted that buyers had absorbed earlier dips to $60,000 and below, while spot-market demand and Bitcoin ETF buying still showed investor interest around current prices.

The problem, according to Cointelegraph, is that much of the latest move has depended on futures activity. That can make price action more fragile when broader market sentiment weakens. The Crypto Fear & Greed Index from Alternative.me remained in the “fear” category, Cointelegraph reported.

Cointelegraph also pointed to Strategy’s recent sale of 3,588 BTC as another concern for the market. The report said Bitcoin’s current price was below Strategy’s $74,582 average price, adding to investor worries that the largest Bitcoin treasury could become a more regular seller.

This story draws on original reporting from Cointelegraph.