The cryptocurrency has recovered somewhat, after a tumultuous weekend that saw it plunge as low as $112K on Saturday.
BTC Weathers the Storm, Holds Near $115K
Bitcoin endured a brutal week, culminating in a Saturday plunge to $112K, a stark contrast to its Monday pre-market rally back to $115K. Last week’s economic winds were a confusing mix: robust GDP figures battled a disappointing jobs report. While the Federal Reserve’s decision to hold rates steady at 4.25-4.50% was widely anticipated, a post-announcement bitcoin bloodbath suggested a deeper market unease, possibly fueled by escalating friction between the Fed and the Trump administration following Jerome Powell’s Wednesday address.
Wall Street and Crypto Town painted the tape green today, staging a synchronized rebound after recent tremors. Forget nail-biting dips – investors are back in the game. The S&P 500 leaped 1.30%, the Nasdaq surged 1.75%, and the Dow Jones Industrial Average added a solid 1.12%. Crypto wasn’t left behind; the overall market, as tracked by Coinmarketcap, bounced back 1.88%, signaling renewed confidence in digital assets.
Could Bitcoin’s wild ride be leveling out? Bloomberg’s Eric Balchunas and others suggest institutional investors are taming BTC’s notorious volatility. The January 2024 debut of spot Bitcoin ETFs unleashed a torrent of institutional cash, fundamentally reshaping the crypto landscape. Add to that the rise of Bitcoin treasury companies, corporations betting big on BTC by holding substantial reserves, and you have a recipe for unprecedented stability. If Balchunas is right, the stomach-churning days of Bitcoin’s price rollercoaster might be over, replaced by a smoother, more predictable climb.
Bitcoin’s Wild Ride Tamed? ETF Launch Sends Volatility Plummeting.
Bloomberg ETF analyst Eric Balchunas reports a seismic shift in Bitcoin’s behavior: “Post-ETF launch, Bitcoin’s notorious volatility has nosedived.” He highlights the dramatic drop on X, noting, “The 90-day rolling volatility is now below 40 for the first time, a stark contrast to the 60+ levels seen pre-ETFs.” Is this the dawn of a new, more stable era for the crypto king?
Overview of Market Metrics
Bitcoin teeters on the edge, currently priced at a hefty $115,491.54, a meager 1.24% climb from Sunday’s close according to Coinmarketcap. But beneath the surface, a tremor: the week reveals a 2.05% dip, with the last 24 hours a tense tightrope walk between $113,966.97 and $115,561.82. Is this a momentary pause before a surge, or the prelude to a deeper fall?
( BTC price / Trading View)
The market’s pulse is barely a murmur today. Trading volume flatlined at $53.43 billion, a 2.21% dip from yesterday’s energy. Market capitalization, however, eked out a small victory, inching up 0.89% to $2.28 trillion. Bitcoin’s grip on the throne loosened slightly, its dominance slipping 0.91% to 61.56% in the last 24 hours – a subtle shift in the crypto power dynamic.
( BTC dominance / Trading View)
Bitcoin futures saw a slight dip in open interest, settling at $79.89 million – a mere 0.47% wobble. But the real story lies in the liquidations since Sunday: a cool $39.25 million flushed from the market. Bears felt the burn the most, with $34.40 million in short positions vaporized, leaving bulls comparatively unscathed at just $4.85 million.
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