CPI cools off—short squeeze in full swing! Bitcoin surges to $65,100; shorts get wiped out as nearly 70,000 liquidations trigger $355 million in losses

The US June CPI cooled unexpectedly to 3.5%. Bitcoin strongly rebounded from last night’s low of $62,314, and this morning the high briefly touched $65,100, setting a near-two-week high. As of this morning, it was temporarily around $64,725, up 3.6% in the past 24 hours. Ethereum surged even more, rising from a low of $1,774 last night, topping out at $1,896, and temporarily quoting $1,874; it gained 5.04% in a single day, also hitting a new high in more than two weeks. In the entire market, nearly 70k people were liquidated in the past 24 hours, totaling $355 million, with short positions accounting for over 80%. The Fear & Greed Index has risen back to 25, which is still in the “Extreme Fear” zone.
(Background briefing: The US June CPI cooled unexpectedly; Bitcoin broke above $63,500, and Fed rate-hike pressure eased)
(Background supplement: Bitcoin retested at $61.8K; 24h liquidations hit $367 million! Fear index hit 22, extreme panic; US stock chips dragged down)

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• Short-squeeze breakout: nearly 70k people liquidated in 24 hours, $355 million in liquidations; shorts account for over 80%
• Trigger factor: June CPI cooled unexpectedly, easing inflation pressure for now
• SOL and XRP bounce in sync
• Fear index rebounds to 25: still in extreme fear, sentiment repairing gradually

Bitcoin staged a strong rebound overnight, rallying from the 24-hour low of $62,314; this (15) morning, the high reached $65,100, marking a near-two-week high. As of the report deadline, it was temporarily around $64,725, up 3.6% over the past 24 hours. Ethereum’s rally was even sharper: after starting to rise from a low of $1,774 overnight, it surged to a high of $1,896 and was temporarily quoted at $1,874, up 5.04% on the day, also setting a new high in more than two weeks.

Short-squeeze breakout: nearly 70k people liquidated in 24 hours, $355 million in liquidations; shorts account for over 80%

This sharp rally forced shorts to pay a heavy price. CoinGlass data shows that over the past 24 hours, the entire market saw 69,762 liquidations; the total liquidation amount was about $355 million. Of that, short-position liquidations were as high as $287 million, accounting for about 81%, while long-position liquidations were $67.21 million—classic short-squeeze conditions. In just the last 12 hours, shorts alone evaporated $143 million. The largest single liquidation occurred on the Binance ETH/USDT trading pair, worth $6.37 million.

Trigger factor: June CPI cooled unexpectedly, easing inflation pressure for now

The fuse that ignited this rebound was the US Bureau of Labor Statistics’ June Consumer Price Index (CPI) released last (14) night: the year-over-year rate fell sharply from 4.2% in May (a more-than-three-year high) to 3.5%. The month-over-month figure also declined by 0.4%. The main driver was a sharp drop in energy prices during the Middle East ceasefire period. The data was far better than market expectations, and the local market already reported the first wave of the move in “US June CPI cools unexpectedly; Bitcoin surges past $63,500.”

US equities also moved higher overnight. The S&P 500 closed up 0.38% to 7,543.59. The Nasdaq jumped 0.9%—supported by semiconductor stocks—and closed at 26,107.01. The Dow Jones Industrial Average inched up 0.02% to close at 52,508.27. Crypto capital flows also improved: US spot Bitcoin ETFs recorded $90.40 million in net inflows on July 10, led by BlackRock’s IBIT, ending the prior streak of consecutive outflows.

However, a warning to watch: the US-Iran ceasefire broke down last week, and tensions around the Strait of Hormuz have risen again. Oil prices have already started to climb, meaning the inflation slowdown driven by energy may be hard to sustain. The market currently expects the Federal Reserve to hold steady at its FOMC meeting on July 28–29, but in September it may instead “raise rates” again. Fed Chair Kevin Warsh also emphasized “zero tolerance” for high inflation, and any easing expectations may still be premature.

SOL and XRP bounce in sync

Other major coins also regained ground together: SOL is currently $77.5, up 2.89% in the past 24 hours, but it is still some distance from the recent peak of $83.43 hit on July 4. XRP is temporarily $1.11, up 3.49%. Most major coins are generally closing higher.

Fear index rebounds to 25: still in extreme fear, sentiment repairing gradually

On market sentiment, the Fear & Greed Index is at 25 today, continuing to rise from 22 yesterday and from 20 last week. But it remains trapped in the “Extreme Fear” range, indicating that investor confidence has not truly been restored. In the near term, key things to monitor are the rate guidance at the FOMC meeting at the end of the month, and the direction of oil prices influenced by the Middle East situation. If energy prices surge again, the inflation data that cooled only just now could flip back. Whether this rebound can continue will then face a test.