Category: Crypto market

Clients of Fidelity, a significant US asset manager, bought $132.07 million worth of Bitcoin, indicating that institutional demand for the top cryptocurrency asset is still strong. The asset manager has made it possible for clients to include Bitcoin in long-term savings plans by enabling exposure to the digital asset in 401(k) retirement plans.

Fidelity is proactively purchasing Bitcoin alongside competitors like BlackRock to strengthen its portfolio in the face of shifting market conditions. The company has aggressively increased the scope of its cryptocurrency offerings by integrating retirement accounts and spot ETFs.

Bitcoin saw brief rallies, but overall sentiment remained cautious. The pioneer crypto asset held the $112K mark. The CMC Fear and Greed Index was 42 (Neutral), which was much lower than last week’s 62 (Greed) but slightly higher than 40 the day before.

Risk aversion is often indicated by readings below 50, which show that traders are still reluctant to enter large positions even in the face of improved liquidity signals.

Bitcoin’s primary liquidity zones are identified between $109,000 and $113,000, with a second zone between $117,000 and $121,000. Short-term directional movements are likely to be influenced by these ranges. A failure to break above the upper band could trigger forced liquidations and lead to a brief correction, while a successful sweep of this band would support a bullish continuation.

Stop orders and limit liquidity tend to accumulate in the $109,000 to $113,000 and $117,000 to $121,000 zones, which function as magnet zones. These bands are likely to be the focus of short-term price sweeps. If macroeconomic sentiment improves—such as through progress in trade negotiations with China—Bitcoin could rise significantly. Conversely, negative headlines might lead to rapid liquidations near the lower band before buyers step in.

The turbulent event last week, which resulted in the most severe liquidations in the 16-year history of cryptocurrency, has brought Bitcoin into calmer waters. According to CoinGecko data, while Bitcoin rebounded on Monday, momentum has since slowed, and it is currently trading at around $113,500, approximately 1.5% lower than the previous day.

The market’s expectations of future price fluctuations are reflected in implied volatility, which has dropped to the low 40s in the short term and about 45% for longer periods. With traders adjusting their risk appetite, this decline suggests that the initial panic following the crash has subsided. After a historic liquidation event, the crypto market is stabilizing, and an options expert has observed a notable shift in trader sentiment and strategies.

Bitcoin experienced a dramatic fall of 17% within a matter of hours last Friday, resulting in the loss of approximately $20 billion. This sell-off, now referred to as “Black Friday,” occurred after President Trump announced that all Chinese goods would be subjected to a 100% tariff in retaliation for Beijing’s export ban on rare minerals. Following the crash, market makers who held long gamma positions before the event continue to do so. Essentially, these market makers will need to offset their losses and hedge their positions by purchasing during price dips and selling during price rallies.