Bitcoin climbed to $64,360 on Tuesday, a 0.8% gain that triggered a short squeeze and wiped out $35 million in short positions. The move came as Polymarket traders cut the odds of the CLARITY Act passing to 25%, and Bitfinex analysts warned bitcoin's next direction now hinges on real yields and the $62,000-$65,000 support range.
Bitcoin Defends $63,500 Support
Bitcoin climbed to a session high of $64,360 on Tuesday, a 0.8% gain that lifted its market capitalization to $1.29 trillion. The rally set off a short squeeze, unwinding leveraged bets and wiping out $35 million in short positions.
The cryptocurrency held above $63,500 for most of the session, dipping only to $63,300 late Monday and $63,400 early Tuesday before rallying to $64,129 at 10:20 a.m. EDT and pushing to a new session high.
CLARITY Act Odds Slide as Deadline Nears
Traders have been watching for a possible Senate vote on the CLARITY Act this week. However, prediction markets are growing more skeptical by the day. On Polymarket, the odds of the bill passing in 2026 fell to 25% by Tuesday afternoon, down from 27% on Monday.
Senate Majority Leader John Thune still expects a floor vote before recess. Yet with under three days remaining and a history of similar unfulfilled promises, his comments failed to sway traders pricing the outcome.
Bitfinex Flags Downside Risk on Real Yields
If the legislation stalls, bitcoin's chances of a year-end rally will depend on broader macroeconomic conditions rather than crypto-native catalysts. Bitfinex analysts noted that a reversal from an intra-week peak of $65,420 led to a close below $63,000, with bitcoin finishing at $62,815 on Aug. 1, a level they said activates a downside trigger after two daily closes below $63,000.
The analysts pointed to a strong bond market for longer-term maturities and current pressure on equities as added strain on bitcoin. Still, they said the most important factor is not economic growth. According to Bitfinex analysts: "It is the real cost of money — the return investors can earn after inflation."
Source: Bitcoin News
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