Crypto analysts have spoken about the future following Bitcoin's partial stabilization.

Bitcoin #BitcoinBouncesBack BTC(, after experiencing sharp price movements last week, has been fluctuating just above and below the $70,000 level today.

Wider daily swings exceeding 13% have shaken investor confidence, and a cautious atmosphere persists in the markets.

On Thursday, Bitcoin dropped to $60,033, its lowest level since October 2024. However, on Friday, it rebounded strongly, climbing back above $70,000. Despite this sharp recovery, traders remain cautious.
Chris Beauchamp, the chief market analyst at IG, noted that although cryptocurrency prices have recovered from last week's lows, investors are not rushing to buy "cheap" assets. Beauchamp stated that the crypto markets need upward momentum, but despite the recent recovery, this momentum has not yet materialized.

During last week's sell-off, Bitcoin's volatility increased sharply. The Bitcoin Volmex Implied Volatility Index rose above 97%, marking the largest intraday jump since the collapse of the FTX exchange in 2022. This development indicates that market fragility remains high.
While high volatility in cryptocurrencies is not new, the decline Bitcoin has experienced since reaching a peak of $126,000 in October last year is notable. This decline occurred despite a crypto-friendly White House administration and increased institutional adoption. Additionally, during this period of rising geopolitical uncertainty, Bitcoin's failure to serve as a "digital gold" safe haven has raised questions about this narrative.

However, some signs suggest that optimism has not completely disappeared. In the US, a net inflow of $221 million was recorded into Bitcoin spot ETFs on February 6. This indicates that investors are viewing the recent sharp decline as a buying opportunity.

Jeff Anderson, President of STS Digital Asia, said they expect liquidity to decrease in the short term and for more significant price movements to occur in a nervous market. According to Anderson, a possible pullback below $70,000 is of limited importance; the key movements will be a sustained drop below $62,000 or a strong breakout above $76,000.

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