Bitcoin rebounds strongly and recovers to nearly $61,000! After $450 million in short liquidations wiped out the short-sellers, nearly 450 million shorts were liquidated—yet the fear index is still at 19.

The crypto market staged a strong rebound this morning, with Bitcoin bouncing over 3% from its yearly low of $57,800 to return near $60K, while SOL surged 6.64% to hit a 14-day high, leading major altcoins, and ETH also recovered to $1,608. Total liquidations across the market exceeded $450 million in 24 hours, with short positions accounting for 62% of the squeeze. The Fear & Greed Index remains in extreme fear territory but has recovered from a trough of 11 to 19.
(Previous Context: Bitcoin Counterattacks $60K, SOL Hits 14-Day High! 80k Liquidated, Shorts Squeezed, Fear Index Still at 15)
(Background Supplement: Institutions Not Buying! Bitcoin Faces $4.4 Billion Supply Glut Crisis, Strategy Dumping Adds Selling Pressure)

Table of Contents

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• Over $450 Million Liquidated in 24 Hours, Shorts Account for 62% of Losses
• Relief After Oversold: June ETF Sees Worst Outflows Ever, Citi Lowers Price Targets
• SOL Hits 14-Day High This Morning, Leading Gains, XRP Also Rises
• Fear Index Still in Extreme Fear Territory, Crypto and US Stocks Show Rare Divergence

Bitcoin briefly dropped to $57,800 early this morning, marking a new yearly low, before rebounding strongly. As of press time, it is up +2.96%, trading at $59,827, recovering nearly $2,000 from the low and returning to the $7.16M level. Ethereum also rose +2.91%, currently at $1,607.99, with a 24-hour low of $1,552. The overall market shows a sharp technical bounce, with bulls fighting to recover after panic selling.

Over $450 Million Liquidated in 24 Hours, Shorts Account for 62% of Losses

The rebound was accompanied by large-scale short squeezes. According to CoinGlass data, total liquidations across the market over the past 24 hours reached $450.7 million, with long liquidations at $170.3 million and short liquidations at $279 million, with shorts accounting for 62% of losses. This aligns perfectly with the direction of the rebound, as short-term bears were heavily squeezed and liquidated during the sharp bounce. 12-hour liquidations also reached $322.9 million, with the largest single liquidation order valued at $7.16 million.

Relief After Oversold: June ETF Sees Worst Outflows Ever, Citi Lowers Price Targets

The nature of this rebound is widely interpreted by the market as a technical oversold bounce, with no strong fundamental catalyst. Bitcoin fell 20.48% in June, its worst monthly performance so far in 2026. Meanwhile, spot Bitcoin ETFs saw record net outflows in June, approximately $4.5 billion, 29% more than the previous worst month, with a string of large-scale redemptions late in the month.

Citibank lowered its 12-month price targets for Bitcoin and Ethereum on July 1, citing the significant evaporation of ETF buying and a clear cooling in institutional demand. However, from a historical seasonal perspective, July has traditionally been a recovery month for Bitcoin, with an average monthly return of +7.25%, which some bulls take as a short-term optimistic signal. The most critical macro variable ahead is the FOMC interest rate meeting on July 28-29, where the Fed's stance will determine the next wave of capital flows.

SOL Hits 14-Day High This Morning, Leading Gains, XRP Also Rises

Altcoins generally rose this morning, with Solana (SOL) standing out the most, surging +6.64% to $77.58, and briefly touching $78.96 during the session, marking a 14-day high (CoinGecko data shows it hit a cycle peak of $78.33 around 06:02 this morning). It led the major altcoins by a wide margin. XRP rose modestly +2.17% to $1.0502, with a 24-hour high of $1.0738. The total crypto market cap also recovered as the four major coins all rose, temporarily relieving short-term bearish pressure.

Fear Index Still in Extreme Fear Territory, Crypto and US Stocks Show Rare Divergence

In terms of market sentiment, the Crypto Fear & Greed Index today stands at 19 (Extreme Fear), up from yesterday's 11 but still deep in fear territory. Historical experience shows that extreme fear often corresponds to cyclical lows, but whether sentiment recovery can continue remains to be seen.

Notably, the crypto market today shows a rare divergence from US stock movements: the Dow Jones fell 0.03% on July 1, the S&P 500 fell 0.22%, and the Nasdaq fell 0.66%, with tech stocks losing momentum after two days of rebound; crypto, however, rose at the same time. Whether this divergence is a temporary decoupling or the start of a new trend is being closely watched. Looking ahead, before the July 28-29 FOMC decision, capital flows and ETF inflow data will be the most critical leading indicators.