Bitcoin slipped below $63,000 on July 31, trading at $62,970.02 and down roughly 3% on the day, but the largest cryptocurrency by market capitalization is still on pace to close July with a gain of approximately 7.5% for the month. The pullback comes after bitcoin fell below $58,000 as recently as July 1, underscoring how much ground the asset has recovered over the past four weeks.
Analysts tracking the move say the sharpest source of downside pressure earlier in the month — forced selling tied to leveraged positions — has largely burned through its fuel, leaving the market in a comparatively calmer, if still uncertain, state heading into August.
Liquidations Well Below Typical Range
Average daily liquidations across the market have remained well below the $400 million to $500 million range typically seen over a full year, a sign that leveraged positioning has been trimmed since the volatility earlier in July. Crypto markets also entered the most recent Federal Reserve meeting carrying far less leverage than equities, which analysts say helped limit contagion when volatility did strike.
Jeff Anderson of STS Digital said markets are entering “a new volatility regime,” while Lacie Zhang of Bitget Wallet described the near-term outlook as a “base case is a choppy August with bitcoin range-bound.”
Coldcard Security Incident Adds to Uncertainty
Adding to the month's volatility was a security incident tied to hardware wallet maker Coldcard, in which at least $38 million in bitcoin was reported stolen. Paul Howard of Wincent noted that the proceeds from the incident have not yet been liquidated, but that the knock-on effect on market sentiment was still being assessed as the month closed.
Jobs Report Looms as Next Catalyst
With the Federal Reserve's latest meeting now behind markets, traders are turning their attention to the upcoming U.S. jobs report as the next major macroeconomic catalyst. Investors are looking for clearer signals on the central bank's rate path in the months ahead, a factor that has repeatedly moved bitcoin and broader risk assets in 2026.
For now, bitcoin's ability to hold above the $62,000 level despite the Friday pullback is being read by some analysts as evidence that July's rally, even after giving back some gains, has staying power heading into a historically volatile late-summer stretch.
