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By Omkar Godbole (All times ET unless indicated otherwise)
Friday’s crypto markets are a sea of green, bouncing from yesterday’s brutal drubbing in a classic oversold rebound. But real risks linger, threatening any lasting recovery.
Bitcoin has climbed back to $65,000 after flirting with $60,000, with BlackRock ETF action hinting at capitulation, that is, long-term holders dumping at a loss, often the bear market’s final gasp. The broader market has perked up, too, with XRP, SOL, ETH and other tokens regaining some poise, while the CoinDesk 20 Index added nearly 9% since midnight UTC.
Still, put options on bitcoin remain in demand, signaling persistent downside fear. It makes sense for a couple of key reasons: First, macro risks have eased, but aren’t gone. President Donald Trump signed a funding bill Tuesday to end the government shutdown, but the Department of Homeland Security cash runs dry in eight days, which means there could be another circus by Feb. 14.
Meanwhile, oil prices are buoyant on both sides of the Atlantic on concerns the Iran-U.S. tensions will escalate. A spike there could add to global inflation, triggering a flight to safety and hammering risk assets like crypto.
Most critically, the recent crash has pushed many holders and digital-asset treasuries underwater. Many of those may capitulate and become marginal sellers in the market, potentially capping rallies. Plus, confidence tends to rebuild only slowly after a crash, which is why snapback recoveries always crawl.
These things taken together indicate that the market may not be out of the woods yet. Stay alert!
Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today
For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead”.
For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead”.
For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead”.
Bitcoin surges back above $65,000 after $700 million wipeout in Asia whipsaw (Coindesk): Bitcoin rebounded above $65,000 after its worst one-day drop since November 2022. About $700 million in leveraged crypto positions were liquidated in a few hours,
Stocks reel as AI fears dominate market action (Reuters): Global markets retreated as a stock rout on Wall Street spread worldwide, with volatility gripping precious metals and cryptocurrencies while AI fears weighed on equities.
Weak earnings drag IREN, Amazon; bitcoin stocks rebound in pre-market (CoinDesk): IREN earnings were weaker than expected, while Amazon missed EPS estimates and beat on revenue.
Big tech to spend $650 billion this year as AI race intensifies (Bloomberg): The high spending projections raise concerns about energy supplies, prices, and the potential distortion of economic data, raising questions about whether the companies can afford the costs.
