Bitcoin gains on improving risk sentiment

The cryptocurrency dropped almost 2% in the previous session

Bitcoin gained on Thursday, helped by improving risk sentiment and falling oil prices.

The cryptocurrency dropped almost 2% in the previous session.

Bitcoin was last up 1.9% at $63,352.8 by 21:09 GMT.

The token is now approximately 9% above June’s monthly close, extending a recovery that has held up remarkably well given the geopolitical backdrop. The resilience is notable: crypto sold off on the initial escalation headlines but rallied from oversold territory rather than extending losses – a behavioural shift from the pattern that defined much of Q2, when every macro shock drove capital out of the sector, Iliya Kalchev, analyst at Nexo Dispatch, said.

Derivatives positioning reinforces the constructive-but-cautious read. Bitcoin futures open interest has declined to around $30 billion, according to Glassnode, as the price recovered – traders are reluctant to add leveraged exposure in a volatile macro environment, meaning the move higher is being driven by spot demand rather than leverage. The 30-day implied volatility index has snapped a two-day rise, pointing to expectations of calmer conditions ahead, he said.

A structural signal is drawing attention: the supply of Bitcoin held on centralized exchanges has fallen to its lowest since 2017, at roughly 6.6% of circulating supply. Historically, sustained drawdowns in exchange balances have preceded multi-quarter bull phases, as fewer coins available for sale reduces selling pressure, Kalchev added.

Meanwhile, Coinbase, one of the world’s biggest crypto exchanges, saw a notable departure after chief legal officer Paul Grewal said he would be stepping down following a six-year tenure.

Grewal oversaw Coinbase’s massive legal victory last year, when the U.S. Securities and Exchange Commission dismissed its landmark 2023 lawsuit alleging the exchange operated as an unregistered securities broker.