Bitcoin briefly moved towards $65,000 on Thursday before recovering from intraday falls, with the cryptocurrency retaining support above $64,500 for most of the session.
The price dropped to about $64,144 at its lowest point over the previous 24 hours, but a quick rebound took it back above $64,800. Bitcoin was trading above $64,500 at the time of writing, up 0.2% on the day.
The latest move extended bitcoin’s rise since 1 August to more than $2,000, equivalent to roughly 3%. Its gradual advance has slowed since the beginning of the month but has continued despite periods of selling pressure.
Bitcoin briefly fell below $64,500 in two separate sessions. The first decline came between 21:00 and midnight, when the price slipped to approximately $64,480 or lower. It later recovered and was trading above $64,900 by 01:30 Eastern Standard Time.
A similar pattern developed shortly after 08:00, when bitcoin fell to its 24-hour low of $64,144. The losses were quickly reversed, allowing the asset to regain the $64,800 level before settling back above $64,500.
Bitcoin’s market capitalisation was just a few million dollars below $1.3tn, while the total value of the wider cryptocurrency market moved towards $2.29tn.
The relatively modest price gain was accompanied by a reduction in short liquidations in the derivatives market. More than $30m in short positions were liquidated, down by more than 10% from the $35m recorded on Wednesday.
Across the wider cryptocurrency market, total liquidations reached $212m. Short and long positions accounted for almost equal shares of that figure.
Market sentiment has been influenced in recent weeks by controversy surrounding the CLARITY Act and geopolitical tensions in the Middle East. On Thursday, however, attention appeared increasingly focused on debate surrounding BIP 110 and the possibility of a split in the Bitcoin blockchain.
Discussion on platforms including X remains sharply divided. Supporters of BIP 110 argue that it would help remove non-financial spam, lower the costs of running nodes and protect Bitcoin’s central function as a monetary network.
A vocal majority of traders and developers oppose the proposal. They have raised concerns about the possibility of a chain split, censorship at protocol level and disruption to the Ordinals and non-fungible token (NFT) ecosystems. They also fear that continuing governance disputes could weaken market momentum.
Some traders believe a possible split could create an opportunity for further buying. If the proposal leads to two separate chains, investors holding bitcoin before the snapshot date would expect to receive an equivalent amount of a new token on the split chain.
That prospect can encourage investors to buy bitcoin before a fork, creating a potential price floor as traders seek eligibility for the newly created asset. However, if demand is driven only by the desire to qualify for the snapshot, investors could sell for profit once the fork has taken place, leading to short-term price declines.
Once a hard fork is completed and the technical uncertainty has passed, bitcoin has typically returned to its broader macroeconomic upward trend. That possibility may offer some reassurance to more cautious investors.
Bitcoin is approaching a potential chain split after block 961,632, with supporters of BIP 110 preparing to enforce the proposed rules.
