According to Bloomberg, on Wednesday, Bitcoin (BTC) continued its rebound, reaching a two-week high and rising as much as 2.6% intraday to around $93,965, the highest level since November 17, before retreating to around $93,300. Ethereum and other major tokens also saw modest gains as the cryptocurrency market attempted to regain momentum after weeks of heavy selling. However, market sentiment remains fragile, with investors staying cautious.
Since Bitcoin broke its all-time high of $126,000 in early October, the market has undergone a sharp correction, with the total market capitalization of digital assets evaporating by more than $1 trillion. Sean McNulty, Head of Derivatives Trading for Asia Pacific at FalconX, noted, “We haven’t seen much buying interest at higher levels; market sentiment is still fragile.” Capital inflows have also been limited, with Bloomberg data showing that the 12 US Bitcoin ETFs attracted only about $59 million in inflows on Tuesday, which is considered “weak.”
Recent market volatility has been significant. On Monday, Phong Le, CEO of Strategy Inc., mentioned that the Bitcoin accumulation fund might need to sell cryptocurrency to repay debt, causing a short-term price drop. However, the company later announced the establishment of a $1.4 billion reserve fund to ensure liquidity. On Tuesday, Bitcoin prices rebounded, supported by news that the US Securities and Exchange Commission plans to launch “innovation exemption” measures for digital asset companies, and that Vanguard Group would allow ETFs and mutual funds holding cryptocurrencies to trade on its platform.
Data from Coinglass shows that about $400 million in short positions were liquidated in the past 24 hours, reflecting sharp short-term market swings. QCP Group CEO Melvin Deng stated that this rebound looks more like a “relief rally,” but Bitcoin could use it to regain some momentum. He suggests that investors who have not yet significantly positioned in Bitcoin could look for entry opportunities.
Overall, Bitcoin’s two-week high has provided a short-term boost to the market, but investor confidence has yet to fully recover. The market remains highly volatile, and future price trends will depend on institutional capital inflows and policy developments.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
U.S.-Iran ceasefire drives Bitcoin higher—will this be a short-term rebound or the start of a new bull market?
Affected by the U.S.-Iran ceasefire agreement, the cryptocurrency market rebounded noticeably. Bitcoin briefly broke above $72,700, then fell back to around $71,695, with a gain of 4.3%. Analysts said this rally may be driven by short-term liquidity, while the long-term outlook remains uncertain; investors should watch changes in the macroeconomic environment and the situation in the Middle East.
GateNews29m ago
Charles Schwab Investment Management releases a cryptocurrency investment research report, saying that even a small allocation can increase portfolio risk
Charles Schwab Investment Management published a report stating that cryptocurrency investments do not have a fixed allocation percentage and should be determined based on investors’ goals and risk tolerance. It proposes two investment approaches: return-based and risk-based, and also notes that a modest increase in crypto asset allocation can improve portfolio performance, and that cryptocurrencies can provide diversified returns for traditional asset portfolios.
GateNews35m ago
Bitcoin reclaims $72K after US, Iran agree to 2-week ceasefire
Bitcoin surged past $72,000 after a two-week ceasefire between the US and Iran was announced. Traders often react positively to eased geopolitical tensions, despite overall market fear.
Cointelegraph1h ago
U.S. Spot Bitcoin ETFs See $471.3 Million Inflows Led by BlackRock
U.S. spot Bitcoin exchange-traded funds (ETFs) experienced substantial inflows at the beginning of the week, marking the strongest single-day performance in over six weeks. On Monday, Bitcoin ETFs attracted $471.3 million in net inflows. This surge reversed the previous month’s outflows and
CryptoBreaking2h ago
Iran’s Bitcoin hashrate falls 77% over the past quarter amid conflict
Iran’s hashrate has plummeted over the past quarter amid an ongoing conflict with the US and Israel, though the war itself has not dragged down global hashrate, according to a new report from Hashrate Index.
Iran has lost roughly 7 exahashes per second (EH/s) quarter-over-quarter, said Ian
Cointelegraph2h ago
