Crypto Market Rebounds but Faces Uncertain Growth

Bitcoin and Ethereum Experience Price Fluctuations

The cryptocurrency market has added 3.3% in the last 24 hours. The violent recovery from Monday’s kick-off crash has been losing traction for the past few hours. It seems that while the market has not gone into all-out sell-off mode, a reason for sustained buying is hard to find as threats of surprise tariffs persist.

The sentiment index jumped to 72 after diving to 44. This is a quick return to the norm of recent weeks after a sharp dive to 44 on Monday.

Bitcoin went from $98K to $91K on Monday, then reversed to $102K (Saturday’s level), where again, the sellers took the lead. The departure above the 50-day moving average was an important psychological victory for the bulls, but the fight for it continues.

Ethereum is trading near $2700, having fallen under its 200-day moving average and entering the consolidation area from August to October last year. We often view Ethereum as the ‘canary’ of the crypto market, and it’s not feeling great.

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According to CoinGlass, the massive price drop resulted in the largest liquidation in the history of the crypto market – about $2.27bn. ByBit estimates the figure to be significantly higher – at least $8bn. On that exchange alone, daily liquidations reached $2.1bn.

According to CoinShares, global investments in crypto funds last week totalled $527 million. Investments in Bitcoin increased by $486 million, in XRP – by $15 million, in Solana – by $5 million, in Ethereum – it decreased by $0.3 million.

XRP is now the second-best performing altcoin, having received YTD inflows of $105 million.

MicroStrategy paused Bitcoin purchases last week, breaking a streak of 12 weeks of continuous buying. The company holds 471,107 BTC on its balance sheet, purchased at an average price of $64,511 per coin.

On 3 February, the ‘kimchi premium’ on Bitcoin – a measure of overpricing on South Korean cryptocurrency exchanges – hit a three-year high above 11.9%. Normally, the figure does not exceed 5%.

According to Reuters, India is reconsidering its attitude towards digital assets amid a transformation in how they are perceived in other countries.

by FxPro’s Senior Market Analyst Alex Kuptsikevich