On Thursday (August 1), the price of Bitcoin fell below $65,000 amid increasing global political turmoil, causing the cryptocurrency market to liquidate more than $87.64 million in 24 hours.

Iran's leaders ordered a direct attack on Israel in retaliation for the assassination of Hamas leader Haniyeh in Tehran, a move that drove safe-haven flows into the gold market. Meanwhile, Mt.Gox, once a giant in cryptocurrency trading, moved another 33,963.80 bitcoins, showing that the exchange still holds about 46,162 bitcoins, adding to market uncertainty.

Adding to market instability, geopolitical tensions came as Iran’s Supreme Leader Ayatollah Ali Khamenei ordered a direct attack on Israel in retaliation for the assassination of Hamas leader Ismail Haniyeh in Tehran, according to The New York Times.

Meanwhile, despite the Fed Chairman Powell's revelation that the Fed may consider cutting interest rates at its September meeting, the Bitcoin market reacted coldly and prices continued to fall. According to a report by the on-chain data analysis platform Glassnode, the total amount of liquidation of contracts on the entire network exceeded $121 million in the past 24 hours, of which the long liquidation amount was as high as $33.51 million.

In addition, on-chain activity monitoring shows that the former cryptocurrency trading platform Mt.Gox has transferred 33,963.80 bitcoins from its address, with an estimated value of approximately $2.248 billion. It is not clear to which exchange responsible for executing the compensation distribution this batch of bitcoins has been transferred. This action has triggered market speculation that Mt.Gox may restart operations, further affecting the sentiment of the cryptocurrency market.

Since July 5, the former cryptocurrency trading platform Mt.Gox has transferred out a total of 95,522.70 bitcoins, with an estimated value of $6.143 billion. Of these bitcoins, 61,558.9 have been distributed to creditors through platforms such as Bitbank, SBI VC Trade, Kraken and Bitstamp, involving an amount of approximately $3.894 billion.

Mentougou currently still has about 46,162 bitcoins in its account, with a market value of approximately US$3.056 billion. The future whereabouts of these assets will further affect the dynamics of the crypto market.

At the same time, the cryptocurrency mining sector is also under pressure. Riot Platforms, a well-known Bitcoin mining company, reported its first quarterly loss since 2022, which reflects the continuation of the market's reaction to the Bitcoin halving event in April. This result not only failed to meet market expectations, but also highlighted the challenges of the mining sector in the current economic environment.

In its most recent earnings report, the company reported a second-quarter net loss of $84.4 million, or $0.32 per share, twice the loss forecast by investment research firm Zacks. This marked the company's first quarterly loss since the fourth quarter of 2022.

The significant expansion of losses in this quarter was mainly due to an increase in selling, administrative and general expenses, which rose to $61.2 million from $19.8 million in the same period last year.

In addition, despite the increase in Bitcoin mining revenue, Riot's total revenue fell 8.75% year-on-year to $70 million, slightly below market expectations. The company's mining output fell sharply by 52% during the same period, producing only 844 bitcoins, mainly due to the Bitcoin halving event in April. Due to the Bitcoin halving and the 68% increase in the hash rate of the entire network, Riot's cost of mining a single Bitcoin surged from $5,734 to $25,327, a cost increase of 340%.

In terms of Bitcoin market analysis, despite multiple attempts to push Bitcoin above the $70,000 mark, these efforts have failed to form a broader price uptrend. Independent trader and analyst Skew pointed out that Bitcoin prices continue to fluctuate below this key level, showing the market's tug-of-war between spot demand and supply. He added: "This time the spot market demand comes from a series of new limit bids, and its liquidity has yet to be further verified by the market."

Note that the price fluctuates slightly above or below the spot price, reflecting the intense battle between bulls and bears in the market.

Analysis provided by market intelligence firm IntoTheBlock highlights the ongoing balance between buyers and sellers of Bitcoin. Its “Inside-Outside-Price” (IOMAP) model reveals that the current price of Bitcoin is between two key support and resistance levels.

There is significant buying support in the $60,000 to $66,000 range, with nearly 4.9 million addresses holding approximately 2.34 million Bitcoins in this area. This strong buying provided a solid market bottom.

In contrast, in the $66,500 to $70,000 range, a supply congestion zone forms a clear barrier to upward momentum, with about 5.2 million addresses holding about 2.94 million Bitcoins in this area. This supply layer is a solid barrier that bulls need to break through.

Currently, Bitcoin volatility is at an all-time low, and an unusual market static is unfolding. According to anonymous analyst CryptoCon on Twitter: "We have entered a period of low volatility in Bitcoin, which has lasted for 96 days, the longest period of low volatility in the current cycle."

CryptoCon added that the five-day historical volatility index is nearing the end of low volatility territory. “Do you remember the last time this happened?” he asked, before noting: “Since then, we’ve had 176 days of market excitement and expansion. Patience this time will also pay off handsomely.”

Bitcoin's price dynamics are swinging within a tight trading range, showing a seemingly calm market state. But in the cryptocurrency space, things can change quickly and without warning. Therefore, market participants must continuously monitor on-chain data and technical analysis indicators to keep abreast of market dynamics in real time.

In addition, recent geopolitical events have also affected market sentiment. It is reported that the Iranian leadership has ordered a retaliatory strike against Israel, which has exacerbated global market concerns about the possibility of a larger conflict in the Middle East, which in turn affected the volatility of Bitcoin prices. In this uncertain international environment, the cryptocurrency market is particularly sensitive and investors need to remain highly vigilant.

Escalating geopolitical tensions have triggered significant volatility in the cryptocurrency market. Cryptocurrency markets saw significant declines following the Federal Reserve’s July meeting, with Bitcoin prices falling 2% from $66,500 to $64,500 following Jerome Powell’s press conference. Additionally, major altcoins including Ethereum (ETH), Solana (SOL), Avalanche (AVAX) and Cardano (ADA) also fell in tandem. Meanwhile, Ripple (XRP) has recovered slightly, reversing some of its earlier losses. Overall, the CoinDesk 20, the leading cryptocurrency index, fell 0.8% in the past 24 hours, reflecting the market's reaction to global political uncertainty.

Global financial markets face uncertainty as geopolitical tensions escalate, sparking volatility across a wide range of asset classes. A new report from The New York Times states that Iran’s leaders have ordered retaliatory measures against Israel in direct response to the killing of a Hamas leader in Tehran, raising the risk of a wider conflict in the Middle East.

Against this backdrop, the Fed decided to keep its benchmark interest rate unchanged at its meeting today, and the market is cautious about the expected rate cut in September. Fed Chairman Powell hinted at a press conference after the meeting that a rate cut is "gradually approaching" although a final decision has not yet been made.

Although the digital asset market fell under pressure, traditional assets showed abnormal movements. U.S. 10-year Treasury bond yields fell, gold prices rose to $2,450, near record highs, while WTI crude oil prices rose sharply. The stock market also rebounded significantly. The Nasdaq 100 index, which is dominated by technology stocks, rose 3%, the S&P 500 index rose 2.2%, and the share price of chip giant Nvidia surged 12%.

Grayscale research director Zach Pandel pointed out that the difference in the performance of these assets may be due to investors adjusting their positions before the Fed meeting. He believes that Bitcoin has seen steady inflows after a period of growth, while gold has rebounded after a period of weakness. Pandel concluded that the Fed's potential rate cuts, bipartisan attention to crypto policy, and the prospect of a possible devaluation of the dollar promoted by the Trump administration could all have a positive impact on Bitcoin.