Crypto Market Drifts, But the Tide May Be Turning

Crypto Market Drifts, But the Tide May Be Turning

Market Picture

The crypto market has moved in waves over the past two and a half weeks, experiencing increased selling on the approach to $3.3 trillion, but also finding support on the dips to $3.10 trillion. By the end of the week, it was up to $3.20 trillion.

The Cryptocurrency Fear and Greed Index has also been fluctuating between fear and neutral since the beginning of February, with recent readings of 49. We continue to believe that without a dip in extreme fear, the crypto market will struggle to find the foundations for a rally.

Bitcoin recovered to 97,000 by the end of the week, having been supported by buyers on Tuesday's fall to 93,300. BTC has stuck to a consolidation pattern after November's impulse, remaining overall bullish but reluctant to move to the next level for the time being.

News Background

BTC’s movement looks “manufactured” and possibly suppressed according to JAN3 CEO Samson Mow. He believes there is a large seller in the market who is getting rid of his BTC holdings.

The bullish phase of the Bitcoin market will continue even with a 30% drop from the high to around $77,000, said CryptoQuant CEO Ki Yong Ju, citing historical data. Prices are influenced by macroeconomic factors, which do not rule out a correction.

Strategy announced a $2 billion convertible bond offering, the proceeds of which will be used for general corporate purposes, including bitcoin purchases.

CBOE filed with the US Securities and Exchange Commission (SEC) to list options on three Ethereum-based spot ETFs.

US exchange Binance.US has resumed US dollar deposits and withdrawals after nearly 18 months of restrictions. Binance.US suspended its dollar operations in the summer of 2023 following a lawsuit by the SEC, which accused Binance of failing to register its US unit.

The Nigerian authorities filed a lawsuit against Binance for a total of $81.5 billion, seeking $79.5 billion in damages for alleged economic losses and $2 billion in unpaid taxes over two years.

By the FxPro Analyst Team