Bitcoin Rebounds from a Four-Month Low Amid a Corrective Wave

Bitcoin recovers from its lowest level in four months,
benefiting from a corrective wave as global economic conditions improve.

Contents

Cryptocurrencies
Bitcoin
United States

Cryptocurrencies

Crypto Market Recovery Ends a Widespread Sell-Off

Bitcoin has seen a significant rebound after hitting a four-month low last week,
supported by the recovery of high-risk assets following recent turmoil in global markets.

This improvement followed a decline in pressures stemming from U.S. tariff policies under President Donald Trump,
along with easing concerns over a potential government shutdown.
These factors contributed to market stabilization and reduced the broad sell-off that had impacted various asset classes,
including cryptocurrencies.

Ravi Doshi, Co-Head of Markets at FalconX, commented:
“As we approach the end of a week marked by widespread selling of high-risk assets,
we are now witnessing a corrective upward wave driven by reduced overselling conditions.
The avoidance of a U.S. government shutdown has also helped ease market uncertainty.”

Bitcoin

Bitcoin Regains Momentum

It surged 6.2%, reaching $85,301 yesterday, while smaller cryptocurrencies experienced even larger gains.
Solana rose by more than 9%, Chainlink jumped 13%, and XRP advanced by approximately 8% during trading.

Bitcoin had previously dropped to $77,000 last Tuesday, marking its lowest level since the recent U.S. presidential election in November.
This decline represented a 30% drop from its all-time high of $109,000, recorded in January.

This sharp drop triggered significant capital outflows from Bitcoin exchange-traded funds (ETFs),
along with a large-scale liquidation of long positions in the cryptocurrency derivatives markets.
Trading data indicated that some investors had been betting on Bitcoin falling to $70,000 by the end of February.

Stefan Ouellette, Co-Founder of FRNT Financial Inc., noted:
“The cryptocurrency market is recovering alongside other high-risk assets.
It appears that macroeconomic-driven asset liquidations have at least temporarily paused.
Any further stability in the broader macroeconomic environment is expected to provide additional support for cryptocurrency prices.”

United States

U.S. Economy and Its Impact on Cryptocurrencies

Despite former President Donald Trump hosting a crypto leaders summit at the White House last week,
issuing an executive order to establish a strategic Bitcoin reserve,
and dropping several lawsuits against major cryptocurrency companies, these moves did not significantly boost Bitcoin’s price.
Investors remain focused on broader economic factors such as U.S. inflation and tariff policies.

James Davies, CEO of Crypto Valley Exchange, a platform for futures and options trading directly on blockchain, stated:
“The recent recovery in cryptocurrencies appears to be primarily driven by global macroeconomic factors,
particularly lower-than-expected U.S. inflation figures,
which have alleviated concerns about the American economy.”

With economic uncertainty persisting, investors are closely monitoring monetary and trade policy developments,
as any major shifts in these areas could significantly impact cryptocurrency prices in the coming months.

Bitcoin Rebounds from a Four-Month Low Amid a Corrective Wave

Bitcoin Rebounds from a Four-Month Low Amid a Corrective Wave

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