Bitcoin Rebounds to Nearly $68,000 but Remains Down on the Week
Bitcoin’s trading volume remains subdued, at around $52.7 billion over the past 24 hours, reflecting uncertainty.
Quick overview
- Bitcoin is currently rebounding 1.7% to $67,951.10 but remains down 1.2% for the week and nearly 26% over the past month.
- Market uncertainty is heightened by mixed signals from the Federal Reserve and a subdued trading volume of around $52.7 billion.
- Altcoins like Cardano and BNB are showing gains, while Bitcoin's short-term rebound is driven by derivatives positioning rather than strong market fundamentals.
- Economist Peter Schiff warns of a potential sharp sell-off if Bitcoin breaks key support levels, suggesting a possible drop to $20,000.
With mixed signals from the Federal Reserve and weak risk appetite, the leading cryptocurrency is relying on short positioning to boost market liquidity.
The cryptocurrency market is trading higher this Friday. Bitcoin (BTC) is rebounding 1.7% to $67,951.10, but remains in negative territory on the week, still struggling to recover amid unfavorable signals from the Federal Reserve and cautious investor positioning.
Bitcoin is down 1.2% on the week, and nearly 26% over the past month. Ethereum (ETH) is also under pressure, slipping 1.4% to $1,968.53, with a 3.8% weekly decline.
Altcoins show a more constructive tone. Cardano (ADA) leads gains, rising 4.9% to $0.2844, while BNB climbs 3.4% to $625.84.
Solana (SOL) adds 2.9% to $84.44, Dogecoin (DOGE) jumps 2.4% to $0.1001, Ripple (XRP) rises 1.9% to $1.42, and Tron (TRX) edges up 0.3% to $0.2854.
Market uncertainty amid Fed divisions
Bitcoin’s trading volume remains subdued, at around $52.7 billion over the past 24 hours, reflecting uncertainty over the future path of U.S. interest rates.
Minutes from the Fed’s January meeting revealed growing internal divisions over the long-term trajectory of inflation and rates, with some policymakers even suggesting that rate hikes could be necessary if inflation remains sticky. Disagreements also emerged regarding the macroeconomic impact of artificial intelligence, and the release of the minutes triggered a renewed tilt toward the dollar.
Adding to short-term volatility, nearly $2.5 billion in Bitcoin and Ethereum derivatives contracts are set to expire on Deribit, a move expected to inject liquidity and influence near-term spot price action.
From a technical perspective, open interest shows 19,412 call contracts versus 11,044 puts, implying a put/call ratio of 0.57. This points to a broadly bullish positioning bias, although both Bitcoin and Ethereum are trading below their respective max pain levels.
Bearish warnings resurface
Sentiment was further pressured by comments from economist Peter Schiff, who warned of a potential sharp sell-off if Bitcoin breaks key technical support:
“If Bitcoin breaks $50,000, which looks plausible, it’s very likely to at least reach $20,000. That would be an 84% drop from its all-time high. Bitcoin has done this before, but never with this level of publicity, leverage, institutional ownership, and market cap at stake. Sell Bitcoin now,” he wrote on X.
For now, Bitcoin’s rebound appears more tactical than structural—driven by derivatives positioning and liquidity flows—while macro uncertainty and weak risk appetite continue to cap a sustained recovery.
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