Bitcoin Bounces Back as Risk Appetite Recovers in Global Markets

Bitcoin has rebounded once again as pressure on risk assets in the global market eased slightly. In Friday’s trading, the world’s largest cryptocurrency surged by more than 11 percent, moving past the USD 70,000 mark and at one point climbing to USD 71,464. Earlier the same day, Bitcoin had fallen close to USD 60,000, its lowest level in nearly 16 months, according to a Reuters report.

The strong rally in technology stocks and precious metals also spilled over into the crypto market. As a result, Bitcoin recorded its biggest single-day gain since March 2023. However, despite the rebound, the cryptocurrency remains nearly 8 percent lower on a weekly basis.

Market analysts believe the recovery largely reflects a temporary stabilisation following recent heavy selling pressure.

However, signals from the derivatives market suggest a more cautious outlook. In the options market, demand for protective positions has increased, indicating expectations of a possible further decline in prices.

Bets are rising that Bitcoin could retreat to the USD 50,000–60,000 range by late February. Ether also posted a strong rebound, gaining more than 12 percent on the same day, although it too remains in negative territory on a weekly basis.

DBTech/BMT/OR